As Output Increases, Variable Costs Per Unit Are

question 34

Multiple Choice

As output increases, variable costs per unit are:

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

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Definitions:

Converting Raw Materials

The process of transforming raw materials into finished products or components through manufacturing or production activities.

Direct Labor

The pay received by laborers who are directly contributing to the creation of products or the provision of services.

Factory Overhead

The indirect costs associated with manufacturing, including utilities, maintenance, and depreciation of manufacturing equipment.

Direct Materials

Costs of raw materials that are directly used in the manufacturing of a product and can be directly attributed to the goods being produced.