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: Variable costs are costs that: vary directly in total with changes in the level of activity. vary inversely in total with changes in the

: Variable costs are costs that:

  1. vary directly in total with changes in the level of activity.
  2. vary inversely in total with changes in the level of activity.
  3. decrease on a per unit basis as the level of activity increases.
  4. increase on a per unit basis as the level of activity increases.

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