Q132
Variable cost per unit ________.
A.
varies when output varies
B.
remains constant
AnswerC.
increase when output increases
D.
decreases when output decreases
Answer: Option B
Solution
Answer: Option B
Solution:
Variable cost per unit remains constant. Variable costs are the costs that change in total each time an additional unit is produced or sold. With a variable cost, the per unit cost stays the same, but the more units produced or sold, the higher the total cost. Direct materials is a variable cost.