A variable cost is a cost that varies per unit at every level of activity. occurs at various times during the year. varies in total in proportion to changes in the level of activity. may or may not be incurred, depending on management's discretion.

A variable cost is a cost that varies per unit at every level of activity. occurs at various times during the year. varies in total in proportion to changes in the level of activity. may or may not be incurred, depending on management's discretion.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.

Question

A variable cost is a cost that

varies per unit at every level of activity.
occurs at various times during the year.
varies in total in proportion to changes in the level of activity.
may or may not be incurred, depending on management's discretion.

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