Asked by Neisha Dressler on Jul 03, 2024
Verified
Unit-level costs vary with the number of units produced.
Unit-level Costs
Costs that are incurred for every unit produced, directly proportional to the production volume.
- Absorb the nuances distinguishing different categories of costs: direct, indirect, product-level, batch-level, unit-level, and facility-level.
Verified Answer
ZK
Zybrea KnightJul 08, 2024
Final Answer :
True
Explanation :
Unit-level costs, also called variable costs, are directly proportional to the number of units produced. As more units are produced, the total variable cost increases in direct proportion to the increase in the number of units. Examples of unit-level costs include direct materials, direct labor, and commissions on sales.
Learning Objectives
- Absorb the nuances distinguishing different categories of costs: direct, indirect, product-level, batch-level, unit-level, and facility-level.
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