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Homework answers / question archive / When the number of units manufactured increases, the most significant change in unit cost will be reflected as a(n) increase in the fixed element

When the number of units manufactured increases, the most significant change in unit cost will be reflected as a(n) increase in the fixed element

Finance

When the number of units manufactured increases, the most significant change in unit cost will be reflected as a(n)

    1. increase in the fixed element.
    2. decrease in the variable element.
    3. increase in the mixed element.
    4. decrease in the fixed element.

 

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Answer: d . decrease in the fixed element .

At the time of the increase in the units manufactured in the production process of the company, the most important and the relevant change in the unit costs will be the decrease in the fixed cost or the element of the manufacturing unit.