Which of the following production costs, if expressed on a per unit basis, would be most likely to change significantly as the production level varies?
A) Direct materials.
B) Direct labor.
C) Fixed manufacturing overhead.
D) Variable costs.

Question

Quizplus · Accepted Answer

Fixed manufacturing overhead costs remain constant in total but vary on a per unit basis as production levels change, because the total cost is spread over more or fewer units.

Which of the Following Production Costs, If Expressed on a Per