Variable cost per unit ........

Costing - Phase (I & II) Lean System and Innovation

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Variable cost per unit ________.

varies when output varies

remains constant

increase when output increases

decreases when output decreases

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Explanation:

Variable cost per unit remains constant. Variable costs are the costs that change in total each time an additional unit is produced or sold. With a variable cost, the per unit cost stays the same, but the more units produced or sold, the higher the total cost. Direct materials is a variable cost