varies when output varies
remains constant
increase when output increases
decreases when output decreases
✅ The correct answer is B.
Variable cost per unit remains constant. Variable costs are the costs that change in total each time an additional unit is produced or sold. With a variable cost, the per unit cost stays the same, but the more units produced or sold, the higher the total cost. Direct materials is a variable cost.
Variable cost per unit remains constant. Variable costs are the costs that change in total each time an additional unit is produced or sold. With a variable cost, the per unit cost stays the same, but the more units produced or sold, the higher the total cost. Direct materials is a variable cost.