Variable Costs Per Unit Tend to Decrease as Volume Increases

question 81

True/False

Variable costs per unit tend to decrease as volume increases.

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Definitions:

Recurring Variances

Variances that occur regularly or repeatedly over time, often indicating a systematic issue within a process or system.

Rule Of Thumb

A general principle or guideline that is not strictly accurate or reliable for every situation but is used because of its practicality.

Standard Cost

Predetermined costs for manufacturing or service processes, used as benchmarks for performance evaluation.

Variance Investigation

The process of examining the reasons behind differences between budgeted and actual figures in finance and accounting.