As Output Increases, Variable Costs Per Unit Are

question 52

Multiple Choice

As output increases, variable costs per unit are:

• A) constant.
• B) semi-fixed.
• C) variable.
• D) proportional to total costs.

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Definitions:

Ending Inventory Policy

A company's method for valuing goods remaining unsold at the end of an accounting period.

Variable Overhead

Refers to the manufacturing overhead costs that vary in direct proportion with production volume, such as utilities and materials used in production.