Two Costs at Bradshaw Company Appear Below for Specific Months

question 48

Multiple Choice

Two costs at Bradshaw Company appear below for specific months of operation. $\begin{array}{llrll}&\text { Month}&\text { Amount}&\text { Units Produced }\\\text { Delivery costs } & \text { September } & \$ 40,000 & 40,000 \\& \text { October } & 55,000 & 60,000 \\\text { Utilities } & \text { September } & \$ 84,000 & 40,000 \\& \text { October } & 126,000 & 60,000\end{array}$ Which type of costs are these?

• A) Delivery costs and utilities are both variable.
• B) Delivery costs and utilities are both mixed.
• C) Utilities are mixed and delivery costs are variable.
• D) Delivery costs are mixed and utilities are variable.

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Definitions:

Terms of Sale

Conditions agreed upon by the buyer and seller regarding the delivery, payment, and other aspects of a transaction for goods or services.

Credit Policy Effects

Refers to the outcomes or changes in business performance and financial health resulting from adjustments to a company's credit terms and conditions offered to customers.

Cost Factor

A variable, condition, or aspect that determines the cost of an operation or activity, often expressed as a multiplier or percentage.

Probability of Nonpayment

The likelihood that a debtor will default on their loan obligations, not repaying the principal or interest.