Asked by Niketa Kurjee on May 25, 2024
Verified
Which of the following classifications best describes the behaviour of Cost B
A) Fixed.
B) Direct.
C) Mixed.
D) Variable.
Cost Behaviour
The characteristic of costs that they either remain stable or change in response to variations in business activity levels.
Sales in Units
The total number of individual items sold by a company, as distinguished from sales measured in currency.
- Recognize the types of costs such as fixed, variable, mixed, and step-variable, and analyze their behaviors within the applicable range.
Verified Answer
NS
Natty SynorivaMay 25, 2024
Final Answer :
A
Explanation :
Cost B remains constant at $16,000 regardless of the change in sales units, indicating it is a fixed cost.
Learning Objectives
- Recognize the types of costs such as fixed, variable, mixed, and step-variable, and analyze their behaviors within the applicable range.