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प्रश्न
Variable cost per unit increases when ______.
पर्याय
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
Write a short note on direct costs.
The cost remains same at all levels of output is called ______ cost.
Which definition best describes indirect costs?
Fixed cost is a cost which remains same at ______.
Explain the following:
Sunk cost
Distinguish between direct costs and indirect costs.
Distinguish between shut down cost and sunk cost.
Fixed cost is a cost which ______.
Give an example of Semi-Fixed cost.
Explain with an example the meaning of variable costs.
