All variable costs are unit-level costs.

Name: All variable costs are unit-level costs.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Variable costs can vary with the level of output or activity, but not all variable costs are unit-level costs. Unit-level costs vary with the number of units produced, whereas some variable costs may vary with other factors such as the hours of operation or the quantity of material used, and are not directly tied to the unit level of production.

All Variable Costs Are Unit-Level Costs