Asked by Aidan Packer on May 13, 2024
Verified
While the total amount of variable cost changes with the level of production,variable cost per unit remains constant as volume changes.
Variable Cost
Costs that change in proportion to the level of goods or services produced by a business.
Production Level
The quantity of goods a company produces within a specified period, usually in relation to its capacity.
- Comprehend the principles and impacts of cost behavior in terms of both per unit and cumulative costs.
Verified Answer
JM
Joani MasonMay 14, 2024
Final Answer :
True
Explanation :
Variable cost per unit remains constant regardless of the number of units produced, while the total variable cost changes in direct proportion to the level of production.
Learning Objectives
- Comprehend the principles and impacts of cost behavior in terms of both per unit and cumulative costs.
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