As production increases, what should happen to the variable costs per unit?
A) Stay the same.
B) Increase.
C) Decrease.
D) Either increase or decrease, depending on the fixed costs.

Name: As production increases, what should happen to the variable costs per unit? A) Stay the same. B) Increase. C) Decrease. D) Either increase or decrease, depending on the fixed costs.
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Question

Quizplus · Accepted Answer

Variable costs per unit remain constant as production increases because they are costs that vary directly with the level of production.

As Production Increases, What Should Happen to the Variable Costs