If the activity level increases 10% total variable costs will

A) remain the same.
B) increase by more than 10%.
C) decrease by less than 10%.
D) increase 10%.

Total Variable Costs

Total variable costs are expenses that vary directly with changes in production or sales volume, such as raw materials and labor costs tied to production levels.

Activity Level

A measure of the volume of production or services that influences costs and revenue within a specified period.