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.

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Definitions:

ICD-9

An abbreviation for the International Classification of Diseases, Ninth Revision, a system used for coding and classifying diseases and a wide variety of signs, symptoms, abnormal findings, and external causes of injury or diseases.

ICD-9

International Classification of Diseases, 9th Revision; a coding system used for diagnosing and classifying diseases before being replaced by ICD-10.

ICD-10

The International Classification of Diseases, Tenth Revision, a medical classification list of diagnostic codes for the coding of diseases, symptoms, and procedures.

Conventions

A list of abbreviations, punctuation, symbols, typefaces, and instructional notes appearing in the beginning of the ICD-9. The items provide guidelines for using the code set.