# ECONOMICS

## COST ACCOUNTING

### BREAK EVEN POINT

 Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
A variable cost is one that changes over time
 A True B False
Explanation:

Detailed explanation-1: -Variable cost is constant per unit and fixed cost varies per unit. In total, variable cost varies while fixed cost is constant.

Detailed explanation-2: -A variable cost is a corporate expense that changes in proportion to how much a company produces or sells. Variable costs increase or decrease depending on a company’s production or sales volume-they rise as production increases and fall as production decreases.

Detailed explanation-3: -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.

Detailed explanation-4: -Answer and Explanation: b. Variable cost remains constant on a per-unit basis as the number of units produced increases.

Detailed explanation-5: -Variable costs are the costs that change in total each time an additional unit is produced or sold.

There is 1 question to complete.