In measuring variable cost per unit for cost-volume-profit (CVP) analysis purposes:

Question

Quizplus · Accepted Answer

Both variable production and variable selling/distribution costs are included in measuring variable cost per unit for CVP analysis purposes. This is because variable costs are those costs that vary with changes in the level of production or sales, and both production and selling/distribution activities influence the level of output. By including both types of variable costs, a more accurate analysis can be conducted to determine the breakeven point, target profit, and other CVP metrics.

In Measuring Variable Cost Per Unit for Cost-Volume-Profit (CVP) Analysis