Reference 06-14
Macklemore Corporation Has Identified the Following Costs at Different

question 47

Multiple Choice

Reference 06-14
Macklemore Corporation has identified the following costs at different activity levels: $$\begin{array} { | l | l | l | l | } \hline \begin{array} { l } \text { Activity (units } \\\text { sold) }\end{array} & \text { Cost A } & \text { Cost B } & \text { Cost C } \\\hline 10 & \$ 40 & \$ 100 & \$ 30 \\\hline 20 & \$ 80 & \$ 100 & \$ 40 \\\hline 30 & \$ 120 & \$ 100 & \$ 50 \\\hline 40 & \$ 160 & \$ 100 & \$ 60 \\\hline 50 & \$ 200 & \$ 100 & \$ 70 \\\hline\end{array}$$
-Cost A is best described as?

• A)step-variable
• B)mixed
• C)fixed
• D)variable

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Definitions:

Straight Commission

A compensation model where an employee's pay is based entirely on the sales they generate, with no base salary.

Profit-sharing Plans

A company program where employees receive a portion of the company's profits, linking compensation to the company's financial performance.

Total Control

A management approach where every aspect of a project, process, or organization is under direct control with no external influences.

Gainsharing Plans

Performance-based compensation programs that share the financial benefits of efficiency improvements, increased productivity, or cost savings with employees.