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:

Expected Rates

Predicted percentages or values in various contexts, such as interest rates, growth rates, or return on investment.

Interest-Rate Cost-Of-Funds

The expense related to borrowing funds, calculated based on the interest rate charged by lenders over the period of the loan.

Retained Earnings

Profits that a company keeps, after dividends have been paid, for reinvestment in the business or to pay off debt.

Marginal Cost

The additional cost incurred by producing one more unit of a good or service, a crucial concept in economic decision-making.