Select the Appropriate Type of Cost for Each of the Definitions

question 16

Multiple Choice

Select the appropriate type of cost for each of the definitions below.
-will increase in total in direct proportion to an increase in the cost driver

• A)variable
• B)fixed
• C)mixed
• D)step

---

Definitions:

Net Advantage to Leasing

The total financial benefit that a company receives from leasing assets rather than purchasing them, taking into account all costs and savings.

CCA Class

Denotes the category of depreciable property a business asset falls into in Canada, determining the rate of depreciation for tax purposes.

Net Advantage to Leasing

The total financial benefit of leasing an asset, comparing the costs of leasing versus buying.