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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.

This Question Belongs to Commerce >> Financial Management

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Comments ( 8 )

  1. Muhammad Irfan
    Muhammad Irfan :
    1 year ago

    The stated answer is wrong please correct it immediately

  2. Anshul Chaturvedi
    Anshul Chaturvedi :
    2 years ago

    the option is wrong please see

  3. SUDHANSHU RANJAN
    SUDHANSHU RANJAN :
    2 years ago

    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.

  4. Tajbaba Chabuksawar
    Tajbaba Chabuksawar :
    5 years ago

    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.

  5. Deepak Kumar
    Deepak Kumar :
    5 years ago

    ans is C.

  6. CA Pratik
    CA Pratik :
    6 years ago

    Fixed cost per unit will change and not variable cost

  7. Shah Jay
    Shah Jay :
    6 years ago

    Peru nit Will change with Output but but in totality no change.

  8. അനു. ജി.എസ്സ്
    അനു. ജി.എസ്സ് :
    6 years ago

    Wring answer fixed cost for the total productn will be same and fixed cost per unit remaining diminishing on the basis of productn

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