variable costper unit remains constant or a fixedcostremains fixed in total; it is generally assumed to be the normal operating range of the organization Contribution margin The margin that results whenvariableproductioncosts are subtracted from revenue. It is most useful for making incremental pricing...
Variable cost per unit ... A. remains constant B. varies C. decreases D. increasesThere are 2 steps to solve this one. Solution Share Step 1 Variable Cost Per Unit: An Explanation.Variable cost per unit relates with cost that varies with...
Instead, sometimes it fluctuates more rapidly, often it fluctuates at a lower rate, and sometimes it fluctuates at the same rate to labor. The total variable cost increases and decreases based on the activity level, but the variable cost per unit remains constant with respect to the activity ...
While total variable costs change based on production volume, the variable cost per unit produced remains constant. Variable cost vs. fixed cost Variable and fixed costs both represent key expenses of running a business. However, while variable costs change depending on production, fixed costs ...
Fixed Costs: Cost behaviorCosts are classified into three types on the basis of the behavior of costs: Fixed costs, Variable costs, and Mixed costs. Total fixed costs remain constant whereas the variable cost per unit remains constant. Mixed cost is a combination ...
VariableCostPerUnitExample Thecostperlongdistanceminutetalkedisconstant.Forexample,5centsperminute.PerMinuteTelephoneChargeMinutesTalked McGraw-Hill/IrwinCopyright©2008TheMcGraw-HillCompanies,Inc.Allrightsreserved.2-4 TotalFixedCostExample Yourmonthlybasictelephonebillprobablydoesnotchangewhenyoumakemorelocalcalls.M...
Within the relevant range, total fixed costs remain constant. Regardless of the level of activity, the business pays the same. However, the fixed cost per unit changes as the level of activity changes. As more units are produced, the fixed cost per unit decreases....
A.increases on a per unit basis as thenumber of units produced increases. B.remains constant on a per unit basis asthe number of units produced increases. C.remains the same in total as productionincreases. D.decreases on a per unit basis as thenumber of units produced increases. ...
Variable cost:A.increases on a per unit basis as thenumber of units produced increases.B.remains constant on a per unit basis asthe number of units produced increases.C.remains the same in total as productionincreases.D.decreases on a per unit basis as t
The total expenses incurred by any business consist of variable and fixed costs. Variable costs are dependent on production output or sales. The variable cost of production is a constant amount per unit produced. As the volume of production and output increases, variable costs will also increase....