Onini, Inc

question 56

Multiple Choice

Onini, Inc. produces one product with two production levels: 20,000 units and 80,000 units. At each production level, Onini's per-unit costs for Costs A, B, and C are: What type of cost is each?

• A) Cost A is fixed, Cost B is mixed, and Cost C is variable.
• B) Cost A is fixed, Cost B is variable, and Cost C is mixed.
• C) Cost A is variable, Cost B is mixed, and Cost C is fixed.
• D) Cost A is variable, Cost B is fixed, and Cost C is mixeD. A variable cost stays the same per unit but increases in total when production increases, a fixed cost decreases per unit but stays the same in total when production increases, and a mixed cost decreases per unit and increases in total when production increases.

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Definitions:

Liabilities

Financial obligations or debts owed by a business to creditors, which can be current (due within one year) or long-term.