Which of the following statements regarding variable cost is true?
A) Variable cost increases on a per unit basis as the number of units produced increases.
B) Variable cost remains constant on a per unit basis as the number of units produced increases.
C) Variable cost remains the same in total as production increases.
D) Variable cost decreases on a per unit basis as the number of units produced increases.

Question

Quizplus · Accepted Answer

Variable cost remains constant on a per unit basis as the number of units produced increases. This means that the cost to produce one unit does not change, even though the total variable cost will increase with the production of more units.

Which of the Following Statements Regarding Variable Cost Is True