A variable cost is a cost thata. varies per unit at every level of activity.b. occurs at various times during the year.c. varies in total in proportion to changes in the level of activity.d. may or may not be incurred, depending on management’s discretion.

A variable cost is a cost thata. varies per unit at every level of activity.b. occurs at various times during the year.c. varies in total in proportion to changes in the level of activity.d. may or may not be incurred, depending on management’s discretion.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter2: Building Blocks Of Managerial Accounting

Section: Chapter Questions

Problem 10MC: Variable costs are expenses that ____________________________ . remain constant on a per-unit basis...

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Concept explainers

Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.

Question

A variable cost is a cost that
a. varies per unit at every level of activity.
b. occurs at various times during the year.
c. varies in total in proportion to changes in the level of activity.
d. may or may not be incurred, depending on management’s discretion.

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