Consider the Following Cost Data for the Cost Object, Number

question 118

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. Cost B is best described as $\begin{array}{c}\begin{array}{c}\text {Number of}\\\underline{\text { Machine Setups}}\\0 \\10 \\20 \\30 \\40 \\50\end{array}\begin{array}{c}\\\underline{\text { Cost A }} \\\$ 0 \\20 \\40 \\60 \\80 \\100\end{array}\begin{array}{c}\\\underline{\text { Cost B }} \\ \$ 80 \\79 \\82 \\78 \\81 \\79\end{array}\begin{array}{c}\\\underline{\text { Cost C} } \\\$ 5 \\37 \\66 \\91 \\123 \\154 \end{array}\end{array}$

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

---

Definitions:

Abstract Level

A level of analysis or thought that is complex, dealing with ideas and concepts that are not immediately visible or tangible, often requiring significant thought and interpretation.

Perceptual Patterns

The ways in which individuals organize and interpret sensory information from their environment, forming meaningful understandings of the world.

Sensations

The immediate experiences generated from the stimulation of the senses, including sight, sound, smell, taste, and touch.

Proposition

A statement or assertion put forward for consideration or debate, often as part of an argument or hypothesis.