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Management · Q235

Management Accounting

Graduate and Post Graduate · Management · question 235

Q235

Variable cost per unit is multiplied to quantity of sold units to calculate

A.
per unit cost
B.
variable cost
Answer
C.
fixed cost
D.
multiple cost

Answer: Option B

Solution

Answer: Option B
Solution:
Variable cost per unit is multiplied to quantity of sold units to calculate variable cost. A variable cost is a corporate expense that changes in proportion to production output. Variable costs increase or decrease depending on a company's production volume; they rise as production increases and fall as production decreases.