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Classifying Cost Behavior For each of the graphs displayed below, select the most appropriate cost behavior pattern where the lines represent the cost behavior pattern,
Classifying Cost Behavior For each of the graphs displayed below, select the most appropriate cost behavior pattern where the lines represent the cost behavior pattern, the vertical axis represents total costs, the horizontal axis represents total volume, and the dots represent actual costs. Each pattern may be used more than once.
Using the drop-down box next to each cost description below, select the number to the graph that best depicts the cost behavior pattern.
a. | A cellular telephone bill when a flat fee is charged for the first 500 minutes of use | Answer(1)(2)(3)(4)(5)(6)(7)(8)(9)(10)(11)(12) |
per month and additional use costs $0.25 per minute | ||
b. | Total selling and administrative costs | Answer(1)(2)(3)(4)(5)(6)(7)(8)(9)(10)(11)(12) |
c. | Total labor costs when employees are paid per unit produced | Answer(1)(2)(3)(4)(5)(6)(7)(8)(9)(10)(11)(12) |
d. | Total overtime premium paid production employees | Answer(1)(2)(3)(4)(5)(6)(7)(8)(9)(10)(11)(12) |
e. | Average total cost per unit | Answer(1)(2)(3)(4)(5)(6)(7)(8)(9)(10)(11)(12) |
f. | Salaries of supervisors when each one can supervise a maximum of 10 employees | Answer(1)(2)(3)(4)(5)(6)(7)(8)(9)(10)(11)(12) |
g. | Total idle time costs when employee are paid for a minimum 40-hour week | Answer(1)(2)(3)(4)(5)(6)(7)(8)(9)(10)(11)(12) |
h. | Materials costs per unit | Answer(1)(2)(3)(4)(5)(6)(7)(8)(9)(10)(11)(12) |
i. | Total sales commissions. | Answer(1)(2)(3)(4)(5)(6)(7)(8)(9)(10)(11)(12) |
j. | Electric power consumption in a restaurant | Answer(1)(2)(3)(4)(5)(6)(7)(8)(9)(10)(11)(12) |
k. | Total costs when high volumes of production require the use of overtime | Answer(1)(2)(3)(4)(5)(6)(7)(8)(9)(10)(11)(12) |
and obsolete equipment | ||
l. | A good linear approximation of actual costs | Answer(1)(2)(3)(4)(5)(6)(7)(8)(9)(10)(11)(12) |
m. | A linear cost estimation valid only within the relevant range | Answer(1)(2)(3)(4)(5)(6)(7)(8)(9)(10)(11)(12) |
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