Rymore Company Would Like to Classify the Following Costs According

question 33

Multiple Choice

Rymore Company would like to classify the following costs according to their cost behaviour:
$\begin{array}{|l|r|r|}\hline & \text { July } & \text { August } \\\hline \text { Sales in Units } & 1,500 & 1,600 \\\hline \text { Cost A } & \$ 35,000 & \$ 36,000 \\\hline \text { Cost B } & 16,000 & 16,000 \\\hline \text { Cost C } & 67,500 & 72,000 \\\hline\end{array}$


-Which of the following classifications best describes the behaviour of Cost C?

• A) Mixed.
• B) Variable.
• C) Fixed.
• D) Differential cost.

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Definitions:

Stock Investments

Financial assets representing ownership interest in companies; shareholders may receive dividends and have voting rights.

Cash Dividends

Payments made by a corporation to its shareholders as a distribution of profits in the form of cash.

Net Income

The remaining profit for a company after removing all costs and tax obligations from the overall revenue.

Insignificant Influence

A situation where an investor does not have significant control or influence over the operations and management of a company in which they hold an investment.