Accounting · Cost-Volume-Profit Analysis
In Cost-Volume Analysis, which of the following statements about the relationship between variable cost per unit and total cost is correct?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1If variable cost per unit decreases, total variable cost remains unchanged regardless of volume.
- 2If variable cost per unit increases, total fixed cost remains constant.
- 3If production volume increases, total variable cost increases while the variable cost per unit remains constant within the relevant range.✓
- 4If production volume increases, total variable cost decreases proportionally.
Correct answer
If production volume increases, total variable cost increases while the variable cost per unit remains constant within the relevant range.
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