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Variable Cost Defined

Which of the following is true for Variable Cost ? a. Variable Cost varies per unit of output and does not change with volume. b. Variable Cost varies with volume and varies per unit. c. Variable Cost is constant across various volumes and changes per unit. d. Variable cost varies directly with the volume and stays fixed per unit of output.

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Question added by Deleted user
Date Posted: 2014/08/05
Hujat Ullah Khan
by Hujat Ullah Khan , Group Financial Controller , SAED Alraeda Group

D : is the correct answer. 

Variable cost varies with valume and stays fixed per unit of out put. Ther could be some effect on variable cost per unit of out in case of bulk production like getting discount on raw materials in case of bulk purchases for bulk prodcution. 

Muhammad Usman Shafiq
by Muhammad Usman Shafiq , Manager Accounts , Sehat Al Sewdi Hospital (Dr.Sulaiman Al Habib Medical Group)

d. Variable cost varies directly with the volume and stays fixed per unit of output.

Mir Mujtaba Ali
by Mir Mujtaba Ali , Internal Audit Manager , Confidential

variable cost is the cost that varies with a measure of activity

Opt d

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