Question

The total cost per unit is a combination of which types of costs?

Question 2 options:

rent and equipment


variable and fixed


materials and labor


supplies and utilities

Answer 1

The total cost per unit is a combination of **variable and fixed** costs.

- **Variable costs** change with the level of production (like materials and labor).
- **Fixed costs** remain constant regardless of the level of production (like rent and equipment).

So the correct answer is: **variable and fixed**.