Consider the Following Cost Data for the Cost Object; Number

question 3

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.
Number of $\begin{array}{lrrr}\text { Machine Setups }& \text { Cost A } & \text { Cost } \mathrm{B} &\operatorname{Cost} \mathrm{C}\\\hline0& \$ 5 & \$ 80 & \$ 5 \\10 & 20 & 79 & 37 \\20 & 40 & 82 & 66 \\30 & 60 & 78 & 91 \\40 & 80 & 81 & 123 \\50 & 100 & 79 & 154\end{array}$
Cost B is best described as:

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

---

Definitions:

Incremental Plans

Planning methodology that involves making small or minor updates or changes instead of large, comprehensive shifts.

Tactical Plans

Short-term actions and strategies designed to achieve specific parts of a company's overall strategic plan.

Efficiency

The effectiveness with which an organization, system, or process turns inputs into outputs, minimizing waste and maximizing productivity.

Competitive Advantage

Competitive Advantage is the attribute or set of attributes that allows an organization to outperform its competitors by offering greater value to customers or operating more efficiently.