In managerial cost accounting, costs that remain constant in total over a relevant range of production volume but decrease per unit as output increases are:
AVariable Costs
BFixed Costs
CSemi-Variable Costs
DMarginal Costs
Explanation
• Total Fixed Costs remain unchanged regardless of fluctuations in production volume within the relevant operational range.
• Fixed Cost per Unit decreases as production volume increases because total fixed overhead is spread over more units.
• Variable Costs, in contrast, change in direct proportion to changes in production output.
Exam Relevance
- Topic: Cost Accounting
- Subtopic: Cost Behavior

No Comments