Fixed cost per unit _______.
A. does not change with volume of production
B. be flexible according to the rate of interest
C. changes according to volume of production
D. not remains constant
Answer: Option C
Solution(By Examveda Team)
Fixed cost per unit changes according to volume of production. A fixed cost is a cost that does not change with an increase or decrease in the amount of goods or services produced or sold.Join The Discussion
Comments ( 8 )
Investment is the _______________.
A. net additions made to the nation’s capital stocks
B. person’s commitment to buy a flat or house
C. employment of funds on assets to earn returns
D. employment of funds on goods and services that are used in production process
Financial Management is mainly concerned with ______________.
A. All aspects of acquiring and utilizing financial resources for firms activities
B. Arrangement of funds
C. Efficient Management of every business
D. Profit maximization
The primary goal of the financial management is ____________.
A. to maximize the return
B. to minimize the risk
C. to maximize the wealth of owners
D. to maximize profit
In his traditional role the finance manager is responsible for ___________.
A. proper utilisation of funds
B. arrangement of financial resources
C. acquiring capital assets of the organization
D. efficient management of capital
The stated answer is wrong please correct it immediately
the option is wrong please see
I think this answer is wrong. As Fixed cost never changes with change in volume of production. Whether a company produces 1000 units or 2000 units it's fixed cost will always remain the same. For example, rent or electricity won't increase or decrease with change in level of production. Instead Variable cost will change with the chang in level of production. Like cost of materials, labour and variable overhead will definitely change.
Please correct this answer.
Please do verify it. Certainly, answer is wrong.
Suppose,
In case1 fixed cost is 20000 , variable cost is 30000 and output is 6000. So fixed cost per unit will be 20000/6000= 3.33
If the output increased to 12000 then fixed cost per unit will be 20000/12000= 1.66.
HENCE, THE FIXED PER UNIT VARY BUT FIXED COST IN AMOUNT WILL BE SAME.
ans is C.
Fixed cost per unit will change and not variable cost
Peru nit Will change with Output but but in totality no change.
Wring answer fixed cost for the total productn will be same and fixed cost per unit remaining diminishing on the basis of productn