Select the Appropriate Type of Cost for Each of the Definitions

question 72

Multiple Choice

Select the appropriate type of cost for each of the definitions listed below.
-has a discontinuous cost function

• A)variable
• B)fixed
• C)mixed
• D)step

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Definitions:

Differential Cost

Any cost that differs between alternatives in a decision-making situation. This term is synonymous with avoidable cost and relevant cost.

Decision-Making

The cognitive process of selecting a course of action from multiple alternatives.

Cost Alternatives

Different cost scenarios or options evaluated in decision-making processes.

Product Cost

The total cost associated with producing a product, including direct labor, direct materials, and manufacturing overhead.