BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -The variable cost of production is a constant amount per unit produced. As the volume of production and output increases, variable costs will also increase. Conversely, when fewer products are produced, the variable costs associated with production will consequently decrease.

Detailed explanation-2: -Variable costs vary in a linear fashion with the production level. However, when stated on a per unit basis, variable costs remain constant across all production levels within the relevant range. The following two charts depict this relationship between variable costs and output volume.

Detailed explanation-3: -Variable cost per unit remains constant irrespective of the level of output. A variable cost is a corporate expense that changes in proportion to production output.

Detailed explanation-4: -Answer and Explanation: The statement is TRUE. A variable cost is a cost like direct materials that remain the same per unit regardless of how many units are manufactured. This means that the total cost increases as the number of units produced increase and decrease as the number of units decreases.

Detailed explanation-5: -Variable costs change based on the amount of output produced. Variable costs may include labor, commissions, and raw materials. Fixed costs remain the same regardless of production output. Fixed costs may include lease and rental payments, insurance, and interest payments.