What Type of Cost Exhibits the Behaviour That Follows A)Variable Cost

question 62

Multiple Choice

What type of cost exhibits the behaviour that follows? $\begin{array} { | c | c | c | } \hline \begin{array} { c } \text { Manufacturing } \\\text { Volume } \\\text { (Units) }\end{array} & \begin{array} { l } \text { Total } \\\text { Cost }\end{array} & \begin{array} { c } \text { Cost } \\\text { Per Unit }\end{array} \\\hline 50.000 &\$150,000 & \$ 3.00\\\hline 80.000 & 150,000 & 1.88 \\\hline\end{array}$

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

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Definitions:

Relevant Cost

Costs that should be considered when making decisions because they will be affected by the decision.

Incremental Analysis

The process of evaluating the financial consequences of making changes in business activities, by focusing on the costs and benefits that will change as a result.

Accumulated Depreciation

The total depreciation for a fixed asset that has been charged to expense since that asset was acquired and made available for use.

Manufacture Further

The process of additional or continued production to create finished goods from raw materials or components.