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View Full Version : Fixed costs are really variable. The more you produce, the smaller the unit cost of p


SmS_89
Feb 8, 2013, 12:14 PM
Fixed costs are really variable. The more you produce, the smaller the unit cost of production. Is this statement correct? Why or why not?

paraclete
Feb 8, 2013, 05:52 PM
This depends on your definition of variable. Unit cost of production is not a variable cost but a calculated cost based on a given number of units

Variable costs are defined as those costs which move unoformly in relation to the number of units produced and may otherwise be known as direct costs