Variable costs per unit:

A Decrease as production increases

B Remain constant regardless of production volume

C Increase with production

D Are always zero

✓ Correct Answer: Option B

Variable cost per unit stays the same (e.g., $5/unit). Total variable cost increases with volume but per-unit cost is fixed.

💡 Why is B) the correct answer?

The correct answer to the question "Variable costs per unit:" is Option B: Remain constant regardless of production volume.

The other options — A) Decrease as production increases, C) Increase with production, D) Are always zero — are incorrect for this CPA Exam Prep question. As explained above: Variable cost per unit stays the same (e.g., $5/unit). Total variable cost increases with volume but per-unit cost is fixed.

📚 About This CPA Exam Prep Practice Question

This 2-level CPA Exam Prep question from the Business Environment (BEC) topic is part of BrainForge Quiz's free exam preparation library. Each question includes the correct answer and a detailed explanation to help you understand the underlying concept, not just memorize the answer.

How to use this page: Read the question above, consider all four options (A through D), then check the highlighted correct answer and explanation. For active timed practice, start a free CPA Exam Prep practice test or use flashcards for spaced repetition review.

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Variable costs per unit:

✓ Correct Answer: Option B

📚 About This CPA Exam Prep Practice Question

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