Verna Salsbury tells you that she thinks the terms fixed cost and variable cost are confusing. She

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Verna Salsbury tells you that she thinks the terms fixed cost and variable cost are confusing. She notes that fixed cost per unit changes when the number of units changes. Furthermore, variable cost per unit remains fixed regardless of how many units are produced. She concludes that the terminology seems to be backward. Explain why the terminology appears to be contradictory.

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Fundamental Managerial Accounting Concepts

ISBN: 9780073526799

4th Edition

Authors: Thomas Edmonds, Bor-Yi Tsay, Philip Olds

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