Unit variable costs may be affected by all of the following except changes in the a.level...
Unit variable costs may be affected by all of the following except changes in the
a.level of activity.
b.sales commission paid to salespeople.
c.cost per unit of direct materials.
d.wage rate of direct labor.
Homework Answers
Correct answer------------a.level of activity.
.
Unit variable cost do not change at per unit level level unless there is any increase in cost. Level of activity do not affect unit cost. Say for example commission of salesmen on sales is $5 per unit. The sales commission is variable cost, if sales increase commission increase in total but remain same at unit level.Similarly if sales decrease commission decrease in totality but still be $5 per unit.
Change in cost of material, direct labor rate and Sales commission can change per unit variable cost.
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