Given the Following Cost Data, What Type of Cost Is

question 168

Multiple Choice

Given the following cost data, what type of cost is shown?

• A) mixed cost
• B) variable cost
• C) fixed cost
• D) period cost

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Definitions:

Historical Cost

The original monetary value of an asset or expense as recorded at the time of purchase or acquisition.

Fair Value

An estimate of the price at which an asset would trade in a competitive auction setting.

Long-Term Investments

Assets that a company intends to hold for more than one fiscal year, such as stocks, bonds, real estate, or investments in other companies.

Available-for-Sale Debt Securities

Debt securities not classified as held-to-maturity or trading securities, recorded at fair value and subject to changes in the income statement upon realization.