Which ONE of the following statements is true? A. The total variable cost varies with a measure of activity. B. A variable cost is an unavoidable cost. C. A variable cost is relevant for decision-making. D. A variable cost does not become fixed in the long run.
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The total variable cost varies with a measure of activity. This statement is true because variable costs change based on the level of production or activity. For example, the cost of raw materials will increase as more units are produced. B. A variable cost is an Show more…
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