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CCH Gold operates a gold mine in Western Australia. The manager of the company would like to better understand the cost structure of his business.

CCH Gold operates a gold mine in Western Australia. The manager of the company would like to better understand the cost structure of his business. Below is the information for the past three years of operations.

2016

2017

2018

Production (tonnes of gold)

1,400

2,300

2,100

Straight-line depreciation

$400,000

$400,000

$400,000

Mining labour

$364,000

$598,000

$546,000

Royalties

$185,000

$207,500

$202,500

Trucking and hauling

$220,000

$310,000

$310,000

Charitable donations*

$35,000

$30,000

$40,000

(Note: Charity donations is a managerial decision that is unlikely to be related to changes in production.)

The Mining labour cost is:

Group of answer choices:

Committed Fixed Cost

Discretionary Fixed Cost

Variable cost

Semi-variable cost

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