21A cost which remains constant per unit at various levels o

21.A cost which remains constant per unit at various levels of activity is a

A. variable cost.

B. manufacturing cost.

C. mixed cost.

D. fixed cost.

Solution

The correct option is a.variable cost

Variable cost per unit remains same at all levels of activity while total fixed cost also remains the same at all levels of activity.

However,total variable costs changes with change in activity levels(ie an increase in activity brings about an increase in variable costs and vice-versa).