Match Each of the Following Costs with the Graph (A-E)

question 53

Short Answer

Match each of the following costs with the graph (a-e) that best portrays its cost behavior as the number of units produced and sold increases.
-Salary of the night-time security guard of $3,800 per month
A)Graph 1
B)Graph 2
C)Graph 3
D)Graph 4
E)Graph 5

• A)Graph 1
• B)Graph 2
• C)Graph 3
• D)Graph 4
• E)Graph 5

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Definitions:

Accounting Equation

The fundamental principle of accounting that represents the relationship between an entity's assets, liabilities, and equity (Assets = Liabilities + Equity).

Liabilities

Financial obligations or debts that a company owes to others, which must be settled over time.

Stockholders' Equity

The residual interest in the assets of a corporation after deducting its liabilities, essentially representing the ownership interest held by shareholders.

Increase Assets

Actions or transactions that cause a rise in the total value of a company's assets.