Overhead Costs ________ as the Number of Units Produced Increases

question 104

Multiple Choice

Overhead costs ________ as the number of units produced increases.

• A) decrease
• B) increase steadily
• C) fluctuate
• D) remain the same
• E) increase rapidly

---

Definitions:

Equivalent Unit

A concept in cost accounting used to express the amount of work in progress inventory in terms of fully completed units of output.

Goods

Tangible personal property or merchandise.

UCC

The Uniform Commercial Code is a comprehensive set of laws governing all commercial transactions in the United States.

Risk Of Loss

The legal responsibility for the accidental destruction or deterioration of goods, often determining which party bears the risk during transactions.