A cost which remains constant per unit at various levels of activity is a
A) variable cost.
B) fixed cost.
C) mixed cost.
D) manufacturing cost.

Question

Quizplus · Accepted Answer

Variable costs change in total in direct proportion to changes in activity level but remain constant per unit. Fixed costs remain constant in total regardless of activity levels, but per unit, they vary inversely with activity levels. Mixed costs contain elements of both variable and fixed costs. Manufacturing costs can be variable, fixed, or mixed, depending on the specific cost in question.

A Cost Which Remains Constant Per Unit at Various Levels