To produce one unit of output, a business needs material that costs $1\,000. If 20 items are made, the overall material cost is $20\,000. Which term best identifies this cost?
- Afixed cost
- Bsemi variable cost
- Cstepped cost
- Dvariable cost
Accounting 9706 · AS & A Level · Costs and cost behaviour
To produce one unit of output, a business needs material that costs $1\,000. If 20 items are made, the overall material cost is $20\,000. Which term best identifies this cost?