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Financial & Managerial Accounting
Found in: Page 967
Financial & Managerial Accounting

Financial & Managerial Accounting

Book edition 7th
Author(s) John J Wild, Ken W. Shaw, Barbara Chiappetta
Pages 1096 pages
ISBN 9781259726705

Short Answer

In what sense can a variable cost be considered constant?

The variable cost per unit always remains constant for all output levels.

See the step by step solution

Step by Step Solution

Step 1: Meaning of Cost

The term cost refers to the expenses incurred by a business to produce goods or services. Effective planning and efficient decision-making costs are divided into variable and fixed costs for better understanding.

Step 2: Consideration of variable cost

The variable cost per unit is considered constant because it remains unaffected by the production level. The variable cost per unit remains constant for all production output levels.

Hence, it is the only case when the variable cost per unit remains unchanged for all the production levels.

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