The Cost Graphs Below Show Various Types of Cost Behaviors

question 196

Essay

The cost graphs below show various types of cost behaviors.For each of the following costs, identify the cost graph that best describes its cost behavior as the number of units produced and sold increases: (a)Sales commissions of $6,000 plus $0.05 for each item sold
(b)Rent on warehouse of $12,000 per month
(c)Insurance costs of $2,500 per month
(d)Per-unit cost of direct labor
(e)Total salaries of quality control supervisors
(One supervisor must be added for each additional work shift.)
(f)Total employer pension costs of $0.35 per direct labor hour
(g)Per-unit straight-line depreciation costs
(h)Per-unit cost of direct materials
(i)Total direct materials cost
(j)Electricity costs of $5,000 per month plus $0.0004 per kilowatt-hour
(k)Per-unit cost of plant superintendent's salary
(l)Salary of the night-time security guard of $3,800 per month
(m)Repairs and maintenance costs of $3,000 for each 2,000 hours of factory machine usage
(n)Total direct labor cost
(o)Straight-line depreciation on factory equipment

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Definitions:

Decay

The process by which information is lost over time from memory, especially when it is not rehearsed or reviewed.

Consolidation

A process in neuroscience, particularly regarding memory, where short-term memories are transformed into more stable, long-term memories.

New Learning

The process of acquiring new knowledge or skills.

Forgetting Curve

A graph that describes the rate at which information is lost over time when there is no attempt to retain it.