The Following Information Was Collected for One of the Costs

question 44

Multiple Choice

The following information was collected for one of the costs at Demetra Manufacturing Corporation over the past two years:
Assuming that there has been no change in the cost structure over the last two years and this activity is within the relevant range, this cost at Demetra would best be described as a:

• A) fixed cost
• B) mixed cost
• C) step-variable cost
• D) true variable cost

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Definitions:

U.S. Labor Force

Comprises all the people actively seeking employment and those currently employed within the United States, whether in full-time or part-time positions.

World Price

The international market price of a good or service, determined by world demand and supply.

Agricultural Resources

The natural resources and inputs used in the cultivation of crops and the raising of livestock, including land, water, and genetic stocks.

U.S. Government's Ethanol Program

A policy initiative aimed at encouraging the production and use of ethanol, a biofuel, through subsidies, mandates, and incentives to promote renewable energy and reduce dependence on fossil fuels.