Variable cost per unit

Home / Commerce / Costing / Question

Examveda

Variable cost per unit ________.

A. varies when output varies

B. remains constant

C. increase when output increases

D. decreases when output decreases

Answer: Option B

Solution (By Examveda Team)

Variable cost per unit remains constant. Variable costs are the costs that change in total each time an additional unit is produced or sold. With a variable cost, the per unit cost stays the same, but the more units produced or sold, the higher the total cost. Direct materials is a variable cost.

This Question Belongs to Commerce >> Costing

Join The Discussion

Comments (1)

Hameed Khan:

4 years ago

variable cost are very with production of units. if No. of units increases variable cost will be increases and vise versa. so you need to change option. option B is not correct.
thanks