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प्रश्न
Variable cost per unit increases when ______.
विकल्प
Volume of production decreases
Volume of production increases
Cost of raw material decreases
Tax decreases
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उत्तर
Variable cost per unit increases when volume of production decreases.
Explanation:
When manufacturing volume drops, fixed expenses are spread across fewer units, potentially raising the overall cost per unit if variable costs are not strictly per unit. However, it's worth noting that this usually relates to fixed costs rather than variable expenditures. In most cases, genuine variable costs per unit should be consistent and independent of production volume.
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संबंधित प्रश्न
Describe cost on the basis of behaviour.
Which cost decreases with increase in the volume of output?
It refers to the expenses incurred on those items which are not directly chargeable to production. Salaries of timekeeper, foremen and watchmen are examples of this cost. This cost is incurred for the concern as a whole rather than a particular product.
What is opportunity cost?
Distinguish between controllable and uncontrollable costs.
Distinguish between Direct Labour cost and Indirect Labour cost.
Give an example of opportunity cost.
"Some costs are semi-variable in nature." Comment.
Explain with an example the meaning of variable costs.
Write short notes on Variable Costs.
