Unit-level costs vary with the number of units produced.

Name: Unit-level costs vary with the number of units produced.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Unit-level costs, also called variable costs, are directly proportional to the number of units produced. As more units are produced, the total variable cost increases in direct proportion to the increase in the number of units. Examples of unit-level costs include direct materials, direct labor, and commissions on sales.

Unit-Level Costs Vary with the Number of Units Produced