Question

Variable costs:

[[selectone]]

a. can always be traced directly to the cost object

b. include most personnel costs and depreciation on machinery

c. the cost per unit will not change with changing the production volume within the relevant range

d. are always indirect costs

Answer 1

Answer - C.variable costs is the cost per unit  will not change with changing the production volume within the relevant range.

Within the relevant range a variable costs per unit will remain constant and fixed cost per unit will fluctuate .

the relevant range is the range of activity with in which the assumptions about variable and fixed cost are valid.

a variable cost is a cost that varies, in total, in direct proportion to changes in the level of activity, as such, a variable cost is constant when expressed on a per unit basis .

a fixed cost is a cost that remains constant ,in total ,regardless of change in the level of activity .when expressed on a per unit basis ,a fixed cost per unit increases and decreases inversely with changes in activity.