Unit variable cost does not change as the number of units of activity changes.

Unit Variable Cost

A cost that varies directly with the production volume, including materials and labor directly involved in production.

Units of Activity

A depreciation method that allocates an asset's cost based on its usage, activities, or units produced, rather than the passage of time.

Classify costs into categories of per-unit variability versus total change with respect to activity intensity.

Verified Answer

Logan DavisMay 21, 2024

Final Answer :

True

Explanation :

Unit variable cost remains constant per unit of activity even if the number of units of activity changes.

Learning Objectives

Classify costs into categories of per-unit variability versus total change with respect to activity intensity.