Consider the Pairs of Data Presented Below for 3 Costs

question 128

Essay

Consider the pairs of data presented below for 3 costs of USM Corporation:
Cost Driver A Cost A Cost Driver B Cost B Cost Driver C Cost C
0 1,200 0 0 0 600
80 1,380 130 1,735 110 890
175 1,495 130 1,735 209 1,200
244 1,475 314 5,488 325 1,500
377 1,390 422 6,987 457 1,700
462 1,500 507 8,723 560 2,000
a)Using scatter plots or other informal methods such as studying the variation in cost compared to the variation in cost driver, describe the behaviour of each cost.
b)For each cost that you described above, give one example of a cost that would behave similarly. For variable and mixed costs, also identify the cost driver.

---

Definitions:

Pallets

Flat transport structures that support goods in a stable manner while being lifted by forklifts, pallet jacks, or other jacking devices, key in logistics and storage.

Technology Close

A close in which the seller uses technology to present information.

Act Professionally

Conducting oneself in a manner that is ethical, responsible, and respectful within a professional environment, often adhering to the standards and expectations of the profession.

T-Account Close

The process of transferring the balances of temporary accounts to a permanent account at the end of an accounting period to prepare for a new period.