Unit Variable Cost Refers to Variable Cost Expressed

question 157

Multiple Choice

Unit variable cost refers to variable cost expressed

• A) as the sum of all units sold.
• B) on a per unit basis for a product.
• C) as a percentage of total sales.
• D) as a percentage of fixed costs.
• E) as a percentage of total costs.

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Definitions:

Inventory Management

The supervision of non-capitalized assets (inventory) and stock items, aiming to ensure the right products are in the right quantity for sale, at the right time.

Service Inventories

Assets held by a service business to support service delivery, including physical items, information, and capacities.

Cycle-Counting Personnel

Employees responsible for periodically counting inventory items to ensure accuracy without interrupting daily operations.

Inventory Holding Cost

The total cost incurred by holding inventory, including storage, insurance, spoilage, and opportunity costs.