Answer the Question on the Basis of the Following Cost

question 149

Multiple Choice

Answer the question on the basis of the following cost data. $\begin{array} { | c | c | } \hline \text { Output } & \text { Total Cost } \\\hline \mathbf { 0 } & \mathbf { \$2 4 } \\\hline 1 & 33 \\\hline 2 & 41 \\\hline 3 & 48 \\\hline 4 & 54 \\\hline 5 & 61 \\\hline 6 & 69 \\\hline\end{array}$ The total variable cost of producing 5 units is

• A) $61.
• B) $48.
• C) $37.
• D) $24.

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Definitions:

Contra Account

An account used in the general ledger to reduce the value of a related account when the two are netted together.

IFRS

The International Financial Reporting Standards (IFRS) are a set of accounting standards developed by the International Accounting Standards Board (IASB) that guide the preparation of financial statements globally.

U.S.GAAP

United States Generally Accepted Accounting Principles; a set of accounting standards used in the U.S. for financial reporting.

Comprehensive Income

The total change in equity for a reporting period other than from transactions with owners, including all unrealized gains and losses.