A company has a cost that is $3.00 per unit at a volume of 9,000 units and $3.00 per unit at a volume of 11,000 units.What type of cost is this?
A)Fixed
B)Variable
C)Sunk
D)Noncontrollable

Question

Quizplus · Accepted Answer

The cost per unit remains the same at both volume levels, indicating that it is a variable cost. Fixed costs would stay constant regardless of volume, while sunk costs are costs that have already been incurred and cannot be recovered. Noncontrollable costs are not relevant to this scenario.

A Company Has a Cost That Is $3