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    SmS_89's Avatar
    SmS_89 Posts: 1, Reputation: 1
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    Feb 8, 2013, 12:14 PM
    Fixed costs are really variable. The more you produce, the smaller the unit cost of p
    Fixed costs are really variable. The more you produce, the smaller the unit cost of production. Is this statement correct? Why or why not?
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    paraclete Posts: 2,706, Reputation: 173
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    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
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