Consider the Following Cost Data for the Cost Object, Number

question 8

Multiple Choice

Consider the following cost data for the cost object, number of machine setups. Each set of costs (A, B, and C) is from a different type of manufacturing operation and represents the cost behaviour for the cost of that company's machine setups. $\begin{array}{c}\begin{array}{c}\text {Number of}\\\underline{\text { Machine Setups}}\\0 \\10 \\20 \\30 \\40 \\50\end{array}\begin{array}{c}\\\underline{\text { Cost A }} \\\$ 0 \\20 \\40 \\60 \\80 \\100\end{array}\begin{array}{c}\\\underline{\text { Cost B }} \\ \$ 80 \\79 \\82 \\78 \\81 \\79\end{array}\begin{array}{c}\\\underline{\text { Cost C} } \\\$ 5 \\37 \\66 \\91 \\123 \\154 \end{array}\end{array}$
Cost A is best described as:

• A) Variable
• B) Fixed
• C) Mixed
• D) Direct

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Definitions:

Iron

A chemical element with symbol Fe, known for its role in biological processes such as oxygen transport in hemoglobin and as a component of many enzymes.

Chlorine

A chemical element with symbol Cl and atomic number 17, a reactive halogen that is used as a disinfectant and in the manufacture of a wide range of products.

Sodium

A chemical element with symbol Na and atomic number 11, known for its role in nerve impulse transmission and muscle contraction.

Covalent Compound

A compound in which atoms are held together by covalent bonds; covalent compounds consist of molecules. Compare with ionic compound.