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Listed below are the units produced and total cost of production of a particular product for the last few months. January units: 1,000 ; Total

Listed below are the units produced and total cost of production of a particular product for the last few months.

  • January units: 1,000 ; Total cost: $10,000
  • February units: 950 ; Total cost: $9,550
  • March units: 1,200 ; Total cost: $11,800
  • April units: 2,000 ; Total cost: $19,000

Q - From the data you would best classify the product as which type of cost: Please explain clearly, only selection a cost option is not a correct answer.

  1. Fixed cost

  2. Step-variable cost

  3. Variable cost

  4. Mixed cost

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