What Type of Cost Exhibits the Behavior That Follows

question 34

Multiple Choice

What type of cost exhibits the behavior that follows?

• A)Variable cost.
• B)Fixed cost.
• C)Semivariable cost.
• D)Step-variable cost.
• E)Mixed cost.

---

Definitions:

Note Receivable

A written promise that entitles the holder to receive payments from a debtor according to agreed terms.

Short-Term Note

A debt obligation with a maturity of less than one year, typically used for immediate financing needs.

Interest Due

The amount of interest that has been accrued and is payable on borrowings for a specified period.

Allowance Method

An accounting technique used to estimate and write off bad debts or accounts receivable that are not likely to be collected.