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A cost that rises by a set amount for each additional unit made is:
AA variable cost
BA fixed cost
CA sunk cost
DA past cost
Answer & Solution
Correct answer: A. A variable cost
1. The two cost classes are distinguished by their response to volume.
2. Fixed costs will not change within a given range of production.
3. Variable costs are those costs that vary per unit of production.
4. A cost rising with each unit made is a variable cost.
_Source: OpenStax Principles of Accounting, Volume 2: Managerial Accounting (CC BY-NC-SA 4.0), Ch 3 'Cost-Volume-Profit Analysis'_
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