Question
Data for Cost A and Cost B are as follows # of Units Produced Total Cost Cost A 1 $ 10 10 100 100 1,000
Data for Cost A and Cost B are as follows
|
| # of Units Produced | Total Cost |
| Cost A | 1 | $ 10 |
|
| 10 | 100 |
|
| 100 | 1,000 |
|
|
|
|
|
| # of Units | Per Unit Cost |
| Cost B | 1 | 5,000 |
|
| 10 | 500 |
|
| 100 | 50 |
Which of the following best describes the behavior of Costs A and B
| A. | Cost A is variable and Cost B is fixed | |
| B. | Both Cost A and Cost B are variable | |
| C. | Both Cost A and Cost B are fixed | |
| D. | Cost A is fixed and Cost B is variable |
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Auditing And Assurance Services An Integrated Approach
Authors: Alvin A. Arens, Randal J. Elder, Mark S. Beasley
10th Edition
0131457349, 978-0131457348
