Asked by Mariia Dublevska on Jul 12, 2024
Verified
As production increases, the fixed cost per unit
A) increases
B) decreases
C) remains the same
D) either increases or decreases, depending on the variable costs
Fixed Cost Per Unit
The total fixed costs of production divided by the number of units produced, indicating how cost allocation changes with production volume.
Production Increases
The rise in the number of goods and services produced by a company or country, often indicative of economic growth.
- Understand the basic concepts of cost accounting and identify different types of costs (fixed, variable).
Verified Answer
IS
INTAN SALWAJul 14, 2024
Final Answer :
B
Explanation :
Fixed cost per unit decreases as production increases because fixed costs are spread out over a greater number of units, resulting in a lower cost per unit.
Learning Objectives
- Understand the basic concepts of cost accounting and identify different types of costs (fixed, variable).