Why, is this, a variable cost? It is a variable cost because it changes according to the level of cost-driver. The cost of the Item: Building Rent is a fixed cost that is not immediately affected by changes in the cost-driver level. Why, is this a fixed cost? A fixed cost because it is not affected by the immediate changes in the cost-driver level...
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The cost of the Item: Building Rent is a fixed cost that is not immediately affected by changes in the cost-driver level. Why, is this a fixed cost? A fixed cost because it is not affected by the immediate changes in the cost-driver level. What is the cost per unit of each? Variable cost for Raw Materials: 650 ? 1000 = ...
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