Based on the Following Cost Data, What Conclusions Can You

question 65

Multiple Choice

Based on the following cost data, what conclusions can you make about the costs of Product A and Product B?

• A) The cost of Product A is a fixed cost and the cost of Product B is a variable cost.
• B) The cost of Product A is a variable cost and the cost of Product B is a fixed cost.
• C) The costs of Product A and Product B are both variable costs.
• D) The costs of Product A and Product B are both mixed costs.

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Definitions:

Variables

Factors or conditions that can vary or change within a research or experimental setup, affecting outcomes or results.

Positive Correlation

A relationship between two variables in which both variables move in the same direction.

Decreases

Refers to a reduction or decline in the magnitude or value of a certain variable or quantity.

Decreases

A term indicating a reduction or decline in value, quantity, or extent.