Classifying Cost Behavior

For each of the graphs displayed following the problem, select the most appropriate cost behavior pattern where the lines represent the cost behavior, 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. Explain your answer.

A cellular telephone bill when a flat fee is charged for the first 500 minutes of use per month and additional use costs $0.25 per minute

Total selling and administrative costs

Total labor costs when employees are paid per unit produced

Total overtime premium paid production employees

Average total cost per unit

Salaries of supervisors when each one can supervise a maximum of 10 employees

Total idle time costs when employees are paid for a minimum 40-hour week

Materials costs per unit

Total sales commissions

Electric power consumption in a restaurant

Total costs when high volumes or production require the use of overtime and obsolete equipment

A good linear approximation of actual costs

A linear cost estimation valid only within the relevant range

Graphs for Mini Exercise 2-14 Some other relationship (10) (12)