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Variable cost per unit

This question belongs to Commerce Costing
Costing
?

Variable cost per unit ________.

Answer & Solution
Correct Answer: Option B
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.
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1 Comment
Hameed Khan
Hameed Khan 5 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
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