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the answer is Variable Cost
I wanted to get this answered more fully, and correctly. Decreasing variable costs per unit is just wrong. When speaking of variable vs fixed costs, it means in total. A variable cost stays the same per unit, but as volume changes, the total variable costs increase and decrease. (Unless something specifically mentions there's a change per unit.) A fixed cost is fixed in total regardless of volume. But fixed per unit increases and decreases with volume changes. In order for variable and fixed to have their proper meanings, you have to think about them as total costs. For example, if I buy a certain shirt for $7 and sell it for $15, those are variable. They stay the same per unit and I gross $8 per shirt (called contribution margin). The more I sell, the more sales revenue I have and the more variable cost I have -- two shirts will have $7x2 ($14) of variable costs etc. If my fixed costs are $100,000, that will remain fixed regardless of how many of anything I sell. An example of a fixed cost is rent. If activity decreases, total variable costs will decrease, but not per unit variable costs. Total costs also decrease, but that's not complete. And fixed per unit increases, because you don't have as much volume to spread the fixed costs over.
unit fixed costs and total variable cost
Variable cost per unit remains same with level of production and no change in change in level of production.
Although fixed cost per unit decreases with increases in activity levels, total fixed cost is not affected by changes in the activity level within the relevant range.
the answer is Variable Cost
It's a variable cost, as it changes with the change in activity level
A remains constant and B decreases. profit decrease
Variable cost: The cost change with the change in activity is called variable cost. So as much fuel used cost increased accordingly so it is variable cost.
A cost which varies with the level of production activity is not a fixed cost and called variable cost.
when number of activity or units decreases
not sure
remains constant as activity changes
Mortgage payment can either be fixed or variable cost. A fixed cost means the interest rate charged on the loan will remain the same for the loan's entire term. A variable cost means the interest rate changes or decreases as time pass.
I wanted to get this answered more fully, and correctly. Decreasing variable costs per unit is just wrong. When speaking of variable vs fixed costs, it means in total. A variable cost stays the same per unit, but as volume changes, the total variable costs increase and decrease. (Unless something specifically mentions there's a change per unit.) A fixed cost is fixed in total regardless of volume. But fixed per unit increases and decreases with volume changes. In order for variable and fixed to have their proper meanings, you have to think about them as total costs. For example, if I buy a certain shirt for $7 and sell it for $15, those are variable. They stay the same per unit and I gross $8 per shirt (called contribution margin). The more I sell, the more sales revenue I have and the more variable cost I have -- two shirts will have $7x2 ($14) of variable costs etc. If my fixed costs are $100,000, that will remain fixed regardless of how many of anything I sell. An example of a fixed cost is rent. If activity decreases, total variable costs will decrease, but not per unit variable costs. Total costs also decrease, but that's not complete. And fixed per unit increases, because you don't have as much volume to spread the fixed costs over.
unit fixed costs and total variable cost
Variable cost per unit remains same with level of production and no change in change in level of production.