Variable Cost: Variable cost refers the cost which varies due to the change in the level of production. Higher production level refers higher the variable cost, and lower production level refers lower the variable cost. To identify: The effect of increase in output volume on variable cost.

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Chapter 5, Problem 2DQ

To determine

Variable Cost:

Variable cost refers the cost which varies due to the change in the level of production. Higher production level refers higher the variable cost, and lower production level refers lower the variable cost.

To identify: The effect of increase in output volume on variable cost.

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