Suppose You Are Charged a $10 Per Month Base Charge

question 54

Multiple Choice

Suppose you are charged a $10 per month base charge for your electrical service.You are also charged an additional $0.08 for every kwh of electricity you use.The cost is an example of a

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

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Definitions:

Recognized

Officially identified or acknowledged, typically referring to the formal acceptance of financial transactions within accounting records.

Statement

A record or document summarizing financial transactions over a specified time period.

Accrued Expenses

Expenses that have been incurred but not yet paid or recorded in the accounts, representing liabilities for goods or services received.

Incurred

Describes expenses or liabilities that have been realized or consumed in the course of business operations.