Which of the following is true of a variable cost?
A) Total variable cost remains constant with changes in the number of goods sold.
B) Unit variable cost decreases with an increase in production.
C) Unit variable cost remains constant with changes in production.
D) Total variable cost decreases with an increase in the number of goods sold.

Question

Quizplus · Accepted Answer

Unit variable cost remains constant with changes in production. This means that the cost to produce one unit does not change regardless of the total number of units produced.

Which of the Following Is True of a Variable Cost