Select the Appropriate Cost Behaviour for the Following Costs Incurred

question 58

Multiple Choice

Select the appropriate cost behaviour for the following costs incurred by a bicycle manufacturer.
-Depreciation of robotic equipment

• A)Variable
• B)Fixed

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Definitions:

Deduction Testing

The process of testing hypotheses and theories through logical deduction, starting with a general premise and examining specific cases to evaluate validity.

Parsimony

The principle that the simplest explanation of an occurrence, using the least number of assumptions or variables, is preferred.

Scope

The extent or range of an area or subject matter that something deals with or to which it is relevant.

Range

The difference between the highest and lowest values in a set, indicating the extent of variability.