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

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Definitions:

Aerobic Respiration

A process of producing cellular energy involving oxygen. Cells use this method to convert glucose and oxygen into energy.

Photosynthesis

The process by which green plants and some other organisms use sunlight to synthesize nutrients from carbon dioxide and water.

Lactate Fermentation

An anaerobic metabolic process by which glucose or other six-carbon sugars are converted into cellular energy and the metabolite lactate, which is typical in muscle cells under high demand for energy.

Yogurt Production

The process of fermenting milk with specific bacterial cultures to produce yogurt, a thick, creamy, and slightly sour dairy product.