Mixed costs per unit decrease as volume increases because of the variable cost component.

Name: Mixed costs per unit decrease as volume increases because of the variable cost component.
Brand: Quizplus
Rating: 4.7 (37 reviews)

Question

Quizplus · Accepted Answer

Mixed costs consist of both fixed and variable components. While the total mixed cost will increase as volume increases due to the variable component, the per unit cost actually decreases because the fixed cost is spread over more units, not because of the variable cost component.

Mixed Costs Per Unit Decrease as Volume Increases Because of the Variable