Fixed costs are really variable. The more you produce the smaller the unit cost of production. Is this statement correct?© BrainMass Inc. brainmass.com June 4, 2020, 3:04 am ad1c9bdddf
No. This statement is incorrect.
Fixed costs are NOT really variable. While in the scenario above the cost per unit is surely smaller when production is larger, the fixed cost itself is still there and did not change. In other terms, there is no direct correlation between fixed costs ...