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What type of a cost is given? a. fixed cost b. variable cost c. step cost d. mixed cost e. rent cost.

<p>You are given the cost and volume information below:Volume to  Cost</p> <p>1 unit --$15</p> <p>10 units--$150</p> <p>100 units--$1500</p>

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تم إضافة السؤال من قبل Vinod Jetley , Assistant General Manager , State Bank of India
تاريخ النشر: 2014/11/09
Elke Woofter
من قبل Elke Woofter , Project Assistant , American Technical Associates

It is B ... it is a variable cost  ...1 unit = $15 ...10 units will be $150 ...100 units= $1500

 

Variable costs are those costs that vary depending on a company's production volume; they rise as production increases and fall as production decreases. Variable costs differ from fixed costs such as rent, advertising, insurance and office supplies, which tend to remain the same regardless of production output.

Fixed costs are expenses that have to be paid by a company, independent of any business activity. It is one of the two components of the total cost of a good or service, along with variable cost.

VENKITARAMAN KRISHNA MOORTHY VRINDAVAN
من قبل VENKITARAMAN KRISHNA MOORTHY VRINDAVAN , Project Execution Manager & Accounts Manager , ALI INTERNATIONAL TRADING EST.

When the Total Cost per Unit is Constant even with variations in level of production

the type of cost is: Variable.

The given data as per the question,characterized by the above feature(s).

LABIB KOOLI
من قبل LABIB KOOLI , Director of the Sectoral Center for Training in Hotel Technologies at Southern Hammamet , Tunisian Vocational Training Agency (ATFP)

Here the cost stay unvariable then fixed.

Option A.

Vinod Jetley
من قبل Vinod Jetley , Assistant General Manager , State Bank of India

b.

georgei assi
من قبل georgei assi , مدير حسابات , المجموعة السورية

b. variable cost

Ibrahim Hussein Mayaleh
من قبل Ibrahim Hussein Mayaleh , Sales & Business Consultant and Trainer , Self-employed

It is the variable costs (B)

Wolf Klaas Kinsbergen
من قبل Wolf Klaas Kinsbergen , Managing Director, Designer , ingenieursbureau KB International NV

it is strange but they are called variable costs, the explanation of misess woofter, says it all

Divyesh Patel
من قبل Divyesh Patel , Assistant Professional Officer- Treasury , City Of Cape Town

Option B

Ahammed Nizar Mulk
من قبل Ahammed Nizar Mulk , Secondary School Teacher , Ministry Of Education - Maldives

B, as it is varying according to the number of output units.

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