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

question 5

Multiple Choice

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

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

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Definitions:

Annual Dividend

Annual dividend refers to the total dividend payment a shareholder receives per share of stock owned in a company over the course of a year.

Rate of Return

The outcome, whether gainful or not, of an investment throughout an established period, expressed as a percentage of the investment's purchase cost.

Annual Dividend

A financial distribution made by a corporation to its shareholders, usually once or multiple times a year, from its earnings.

Increase by

To grow or expand in value or size by a certain amount or percentage.