CMA Shilpa Shinde
(COST ACCOUNTANT)
(217 Points)
Replied 24 August 2013
Where have u come accross this statement?
aravind
(student)
(132 Points)
Replied 24 August 2013
my best sir ever asked this question pls dont misunderstand there is something special in this ques.my sir completed ca,cma and acs(inter) and 3 MBA and so on...try ur level best mam!!!
CMA Shilpa Shinde
(COST ACCOUNTANT)
(217 Points)
Replied 28 August 2013
Dear Aravind,
U said "ONE MORE VARIABLE COST THAT WILL DECREASE ....."
Not mentioned which is/are other/s than one more.
Still, If ur querry is for Total Variable Cost Decrease & not Per Unit, then there are many variable costs which has direct relation to production which tend to get reduced as increase in Production.
If Raw Material is bought in bulk based on anticipated increase in Production, Bulk buying discount is available which reduces raw material cost.
In Similar way many variable costs in Total gets reduced due to increase in Production.
CAclubindia
