Start networking and exchanging professional insights

Register now or log in to join your professional community.

Follow

Fixed cost are variable per unit, while variable cost are fixed per unit. comment

user-image
Question added by kumud nawal
Date Posted: 2015/11/02
Adel Ali  El-Said
by Adel Ali El-Said , Internal Audit Director . Al Majed for Oud , Al majed for Oud

Fixed costs do not change within the relevant range of production. As long as the production volume remains within the relevant range,

 the total amount of fixed costs does not change with a change in production volume. 

However, the cost per unit decreases as production increases and increases as production decreases. 

whereas

The per unit variable cost remains unchanged as production increases or decreases 

while total variable cost increases as production increases and decreases as production decreases.

More Questions Like This