While variable costs change with level of production, they always stay the same per unit regardless of the level of production. For example, if the variables cost of making an item are $10 when producing 100 units, they will stay $10 each when 500 or 1000 units are produced.

Question

Quizplus · Accepted Answer

Variable costs change with the level of production, so they do not stay the same per unit regardless of the level of production.

While Variable Costs Change with Level of Production, They Always