If the number of units produced decreases, which of the following is true? answer choices Variable cost per unit will increase. Fixed cost per unit will increase. Variable cost per unit will decrease. Fixed cost per unit will decrease.

If the number of units produced decreases, which of the following is true? answer choices Variable cost per unit will increase. Fixed cost per unit will increase. Variable cost per unit will decrease. Fixed cost per unit will decrease.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter2: Building Blocks Of Managerial Accounting

Section: Chapter Questions

Problem 14MC: Which of the following statements is true regarding average fixed costs? A. Average fixed costs per...

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Concept explainers

Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.

Question

If the number of units produced decreases, which of the following is true?

answer choices

Variable cost per unit will increase.
Fixed cost per unit will increase.

Variable cost per unit will decrease.
Fixed cost per unit will decrease.

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