Select the Appropriate Cost Behaviour for the Following Costs Incurred

question 122

Multiple Choice

Select the appropriate cost behaviour for the following costs incurred by a bicycle manufacturer.
-Cost of rework

• A)Variable
• B)Fixed

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Definitions:

Illegal

Activities or actions that are prohibited by law and subject to punishment, including civil or criminal penalties.

Consideration

Something of value that is exchanged between parties in a contract, which is necessary for the agreement to be legally binding.

Gift

Something given voluntarily without payment in return, often as a symbol of affection or goodwill.

Contract

An agreement between multiple parties that is recognized and can be enforced by the legal system.