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Explain the statement:"Fixed cost per unit is variable but
variable cost per unit is fixed".
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Answer / shashi pathak
in a manufacturing company suppose 1 kg plastic require for
producing 1 bucket..company wants to produce 100 bucket then
total raw material require is 100 kg plastic. and, assume 1 kg
plastic costing 10 it is fixed bt when for 100 bucket it will
be 100*10=1000..here it is variable.
and same since cost of raw material is variable bt in case of
one unit it is fixed.
| Is This Answer Correct ? | 3 Yes | 1 No |
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