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Some costs are variable at batch level but fixed for unit level whereas others are variable at production line level but fixed for batches and units. Can anyone pls explain this statement
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Best Answer
Take raw material.cost per unit is the same across all levels but the consumption of raw material is different across every batch .think like this,u buy 5 chocolate for ur brother and 10 chocolate for ur sister.on macro level the total cost is different for ur siblings but the cost each chocolate is the same for all.