Asked by Katherine Roman on Jul 16, 2024
Verified
Dizzy Amusement Park is open from 8:00 am till midnight every day of the year. Dizzy charges its patrons a daily entrance fee of $30 per person which gives them unlimited access to all of the park's 35 rides.Dizzy gives out a free T-shirt to every 100th customer entering the park. The cost of this T-shirt would best be described as a:
A) fixed cost
B) mixed cost
C) step-variable cost
D) true variable cost
Step-Variable Cost
Costs that remain fixed for a certain level of production or operations but can change in steps with significant changes in activity level.
True Variable Cost
Costs that vary directly with the level of production or service volume, such as raw materials and direct labor.
Mixed Cost
consists of both fixed and variable components and changes in total with the level of activity, but not proportionally.
- Discern and distinguish among several kinds of costs, encompassing sunk costs, period costs, product costs, and opportunity costs.
- Grasp the concept of mixed costs and how they are comprised of both fixed and variable elements.
Verified Answer
Learning Objectives
- Discern and distinguish among several kinds of costs, encompassing sunk costs, period costs, product costs, and opportunity costs.
- Grasp the concept of mixed costs and how they are comprised of both fixed and variable elements.
Related questions
Dizzy Amusement Park Is Open from 8:00 Am Till Midnight ...
Mark Is an Engineer Who Has Designed a Telecommunications Device ...
Mark Is an Engineer Who Has Designed a Telecommunications Device ...
Understanding How Costs Behave Is Useful to Management for All ...
Given the Following Cost Data, What Type of Cost Is ...