Asked by Diana Gasparyan on Jun 29, 2024
Verified
As production volume increases,fixed cost per unit of output remains constant.
Fixed Cost
Refers to expenses that do not change in total regardless of the level of production or sales volume, such as rent or salaries.
- Grasp the mechanics and implications of cost behavior on per unit and total cost basis.
Verified Answer
ZK
Zybrea KnightJul 05, 2024
Final Answer :
False
Explanation :
As production volume increases, the fixed cost per unit of output decreases because the total fixed costs are spread over a larger number of units.
Learning Objectives
- Grasp the mechanics and implications of cost behavior on per unit and total cost basis.
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