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This question belongs to Commerce Financial Management
Financial Management
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Fixed cost per unit _______.

Answer & Solution
Correct Answer: Option C
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.
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8 Comments
Muhammad Irfan
Muhammad Irfan 4 years ago
The stated answer is wrong please correct it immediately
Anshul Chaturvedi
Anshul Chaturvedi 4 years ago
the option is wrong please see
SUDHANSHU RANJAN
SUDHANSHU RANJAN 4 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.
Tajbaba Chabuksawar
Tajbaba Chabuksawar 7 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.
Deepak Kumar
Deepak Kumar 8 years ago
ans is C.
CA Pratik
CA Pratik 8 years ago
Fixed cost per unit will change and not variable cost
Shah Jay
Shah Jay 8 years ago
Peru nit Will change with Output but but in totality no change.
അനു. ജി.എസ്സ്
അനു. ജി.എസ്സ് 8 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