Economics · Cost Accounting
If a cost is classified as an indirect variable cost, which scenario correctly reflects its behavior and nature?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1The total cost varies in direct proportion to activity, and it forms part of the prime cost.
- 2The cost per unit decreases as output rises, and the total cost is apportioned across departments.
- 3The total cost remains constant within a relevant range and is traceable to a specific job.
- 4The cost per unit remains constant, but the total cost is not traceable to a single cost unit.✓
Correct answer
The cost per unit remains constant, but the total cost is not traceable to a single cost unit.
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