Consider the Following Cost Data for the Cost Object; Number

question 6

Multiple Choice

Consider the following cost data for the cost object; number of machine setups. Each set of costs (A, B, and C) is from a different type of manufacturing operation and represents the cost behaviour for the cost of that company's machine setups. Number of
Machine Setups Cost A Cost B Cost C
0 $ 0 $80 $ 5
10 20 79 37
20 40 82 66
30 60 78 91
40 80 81 123
50 100 79 154
Cost C is best described as:

• A)Fixed
• B)Variable
• C)Mixed
• D)Indirect

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Definitions:

Operating Costs

Expenses associated with the day-to-day functioning of a business, including costs for rent, utilities, payroll, and raw materials.

Discretionary Income

The portion of a person's income remaining for investment, savings, or expenditures after deducting taxes and essential living costs such as housing and food.

Personal Income

Refers to the total earnings received by individuals, including wages, salaries, bonuses, and income from investments.

Discretionary Income

the portion of an individual's income available for spending after the essentials (like food, shelter, and clothing) have been taken care of.