Three Different Divisions of a Footwear Manufacturing Company Are Estimating

question 2

Multiple Choice

Three different divisions of a footwear manufacturing company are estimating costs for their human resources departments. Each division has a cost structure that is different from the other divisions' and those structures are represented by the following cost behaviour patterns (A, B, and C) .
Number of $\begin{array}{lrrr}\text { Emplovees } & \text { Cost A } & \text { Cost B } & \text { Cost } \mathrm{C}\\\hline0 & \$ 0 & \$ 120 & \$ 118 \\25 & 50 & 118 & 180 \\50 & 100 & 123 & 245 \\75 & 125 & 124 & 296 \\100 & 200 & 119 & 360\end{array}$
Which cost is best described as variable?

• A) Cost A
• B) Cost B
• C) Cost C
• D) Cost A and Cost C

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Definitions:

Capital Balances

The amount of money that the owners of a business have invested in it, typically represented in the equity section of the balance sheet.

Income and Losses

Represents the financial results of a company's operations, with income meaning the revenues exceeding expenses and losses referring to expenses exceeding revenues.

Capital Interest

The share of ownership in a company or its assets, particularly reflecting the amount invested by owners or shareholders.

Capital Balances

The amounts recorded in the equity section of a company's balance sheet or partnership's accounts, representing the owners' stakes.