Q.3.Explain the following costs briefly?

1. Variable Cost

2. Fixed Cost

3. Opportunity Cost

4. Sunk Cost

Q.4.Maintenance costs at a Tierce Corporation factory are listed below:

Management believes that maintenance cost is a mixed cost that depends on machine-hours. Using the high-low method to estimate the variable and fixed components of this cost, these estimates would be closest to:

A.

$14.54 per machine-hour; $52,671 per month

B.

$9.27 per machine-hour; $19,076 per month

C.

$0.11 per machine-hour; $52,591 per month

D.

$9.27 per machine-hour; $19,071 per month