Question

) Which cost increases as production increases? a)Indirect Cost B)Fixed Cost C)Variable Cost D)Period Cost

) Which cost increases as production increases?

a)Indirect Cost

B)Fixed Cost

C)Variable Cost

D)Period Cost

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Answer #1

Variable costs will increase when production cost increases, and will decrease when production decreases.

Fixed cost per unit will increase when production decrease and will decrease when production increase.

So, Answer will be: C)Variable Cost

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) Which cost increases as production increases? a)Indirect Cost B)Fixed Cost C)Variable Cost D)Period Cost
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