alleryStart learning →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'_
Keep practising Cost Volume Profit Analysis
Browse all Cost Volume Profit Analysis questions for US CMA Part 1, or explore more Accounting topics.
Related questions
Complete the CVP rulesTrue or false: cost-volume-profitMatch each CVP termTap the fixed and variable costsWork the CVP arithmeticA firm below its break-even point is making a loss because contribution margin has not yetRaising the selling price while holding variable cost constant changes the contribution maFixed costs of 13,500 dollars and a contribution margin of 60 dollars per unit give a brea