A variable cost remains constant on a per-unit basis as production increases.

Name: A variable cost remains constant on a per-unit basis as production increases.
Brand: Quizplus
Rating: 4.9 (37 reviews)

Question

Quizplus · Accepted Answer

Variable costs, such as direct materials or direct labor, remain constant on a per-unit basis as production increases or decreases. This means that the cost per unit does not change regardless of the level of production. However, the total variable cost does increase as production increases since more units are being produced.

A Variable Cost Remains Constant on a Per-Unit Basis as Production