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Reference: 06-01
Rymore Company Would Like to Classify the Following

question 5

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Reference: 06-01
Rymore Company would like to classify the following costs according to their cost behaviour:  July  August  Sales in units 1,5001,600 Cost A $35,000$36,000 Cost B 16,00016,000 Cost C 67,50072,000\begin{array} { | l | l | l | } \hline & \text { July } & \text { August } \\\hline \text { Sales in units } & 1,500 & 1,600 \\\hline & & \\\hline \text { Cost A } & \$ 35,000 & \$ 36,000 \\\hline \text { Cost B } & 16,000 & 16,000 \\\hline \text { Cost C } & 67,500 & 72,000 \\\hline\end{array}
-Which of the following classifications best describes the behaviour of Cost B

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Definitions:

Challenges

Difficulties or obstacles that need to be overcome, often requiring effort, skill, or strategy.

Conflict

Conflict refers to a disagreement or clash between individuals or groups due to differences in opinions, values, or interests, which can manifest as debates, arguments, or more severe disputes.

Disadvantage

An unfavorable circumstance or condition that reduces the chances of success or effectiveness.

Risk

The possibility of loss, injury, or other adverse or unwelcome circumstance; a chance or situation involving such a possibility.

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