Based on the Following Cost Data,what Conclusions Can You Make $\quad$

question 18

Multiple Choice

Based on the following cost data,what conclusions can you make about the costs of Product A and Product B? $\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\text { Total Cost }$
$\begin{array}{lrrr}\text { Production: } & \text { Product A } & \text { Product B } \\10 \text { units } & \$ 100 & ? \\100 \text { units } & \$ 1,000& ? \\1,000 \text { units } & \$ 10,000& ?\end{array}$

$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\text { Unit Cost }$
$\begin{array}{rr}\text {Production:}&\text { Product A } & \text { Product B } \\\text { 10 units}&? & \$ 10,000 \\\text { 100 units}&? & \$ 1,000 \\\text { 1,000 units}&? & \$ 100\end{array}$

• A) The cost of Product A is a fixed cost and the cost of Product B is a variable cost.
• B) The cost of Product A is a variable cost and the cost of Product B is a fixed cost.
• C) The costs of Product A and Product B are both variable costs.
• D) The costs of Product A and Product B are both mixed costs.

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Definitions:

Conscientiousness

A personality trait characterized by diligence, carefulness, thoroughness, self-discipline, and the propensity to plan and organize tasks efficiently.

Extraversion

A personality trait characterized by a preference for social interaction, high levels of energy, and the seeking of stimulation in the external world.

Negatively Correlated

A connection between two factors where as one factor rises, the other falls, demonstrating a reverse relationship.

Negatively Correlated

A statistical relationship between two variables in which one decreases as the other increases, or vice versa.