Question

Costs that stay the same per unit, and that increase in total with each unit made and sold are

1. break-even costs

2. variable costs

3. mixed costs

4. fixed costs

Answer 1

Answer- 2) variable cost

The cost that remain constant per unit and changes in total with the change in production is called variable cost.

If production increase the total cost will increase and if production decrease the total cost will decrease, but the per unit cost will remain constant if there is change in production

Fixed cost is the cost that remain constant in total and changes per unit as per change in production.

Break even cost is cost where there is no profit or no loss at that point. The cost incurred at the break even level is break even cost.

Mixed cost is the combination of variable cost and fixed cost . It is also called as step cost, because the per unit cost will remain same upto certain level and again increase and remain constant for some level of output and increase and goes on.