Q4: Variable Cost

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Question's Short Description

1: Changes with output 2: Per unit remains same 3: Example raw material, wages 4: Output related 5: Increases with production

Question's Long Description

1: Total variable cost increases as production increases

2: Variable cost per unit remains constant

3: Examples include direct material and direct wages

4: Zero when production is zero

5: Helps in marginal costing decisions

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