Advertisements
Advertisements
Question
Fixed cost per unit decreases when ______.
Options
Production volume increases.
Production volume decreases.
Variable cost per unit decreases.
Variable cost per unit increases.
Solution
Fixed cost per unit decreases when production volume increases.
Explanation:
As manufacturing volume increases, the total fixed cost is divided across more units, resulting in a lower fixed cost per unit.
APPEARS IN
RELATED QUESTIONS
Distinguish between Fixed cost and Variable cost.
Variable cost is a cost that ______.
Which cost decreases with increase in the volume of output?
Which of the following cost is time based?
Wages paid to a labour who was engaged in the production activities can be termed as ______.
Which of the following best describes a fixed cost?
What is meant by sunk cost?
Distinguish between controllable and uncontrollable costs.
Distinguish between Direct Labour cost and Indirect Labour cost.
What do you mean by Semi-Fixed cost?
