Three Different Divisions of a Toy Manufacturing Company Are Estimating

question 26

Multiple Choice

Three different divisions of a toy manufacturing company are estimating costs for their human resources departments. Each division has a cost structure that is different from the other divisions' and those structures are represented by the following cost behaviour patterns (A, B, and C) . Number of
Employees Cost A Cost B Cost C
0 $ 0 $120 $118
25 50 118 180
50 100 123 245
75 125 124 296
100 200 119 360
Which cost is best described as variable?

• A)Cost A
• B)Cost B
• C)Cost C
• D)Cost A and Cost C

---

Definitions:

Global Capital Market

The worldwide financial markets in which money flows for the purpose of investment and financing across different countries.

Volatile Exchange Rates

Exchange rates that fluctuate widely in a short period of time, affecting the value of currencies traded on the foreign exchange market.

Accounting Standards

The rules and guidelines that companies must follow when reporting financial data.

Disclosure Standards

The requirements and guidelines set by regulatory bodies for the information that must be provided by publicly traded companies to protect investors and maintain transparency.