Using Account Analysis, What Type of Cost Is Satellite TV

question 10

Multiple Choice

Using account analysis, what type of cost is Satellite TV when the charge is $45.00 per month plus $5.99 for pay-per-view movies?

• A)Mixed
• B)Fixed
• C)Step
• D)Variable

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Definitions:

Machine-Hours

A unit of measure representing the operational use time of a machine, commonly used in allocating manufacturing overhead costs in product costing.

Manufacturing Overhead

All indirect costs associated with the production process, including costs of indirect materials, indirect labor, and other indirect expenses.

Direct Labor-Hours

The cumulative hours employees dedicate to directly participating in the creation of a product or the provision of a service.

Overhead Rate

The ratio used to allocate overhead costs to products or services, often based on direct labor hours or costs.