The correct answer is: A. Variable cost
A variable cost is a cost that changes in proportion to the changes in the level of output. For example, the cost
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The correct answer is: A. Variable cost
A variable cost is a cost that changes in proportion to the changes in the level of output. For example, the cost
class="youtube-icon"> Subscribe on YouTubeAn incremental cost is the additional cost incurred when one additional unit of output is produced. For example, if the cost of producing one unit of output is $10, and the cost of producing two units of output is $20, then the incremental cost of producing the second unit is $10.
A fixed cost is a cost that does not change in proportion to the changes in the level of output. For example, the cost of rent is a fixed cost, because the rent you pay does not change regardless of how many products you produce.
A supplemental cost is a cost that is incurred in addition to the regular costs of production. For example, the cost of advertising is a supplemental cost, because it is not a cost that is incurred in the production of the product itself.
In conclusion, the change in cost per unit variable change is called a variable cost.