Question
Shum Manufacturing, which uses the high-low method, makes a product called Kwan. The company incurs three different cost types (A, B, and C) and has
Shum Manufacturing, which uses the high-low method, makes a product called Kwan. The company incurs three different cost types (A, B, and C) and has a relevant range of operation between 2,500 units and 10,000 units per month. Per-unit costs at two different activity levels for each cost type are presented below. Type A Type B Type C Total 5,000 units $4 $9 $4 $17 7,500 units 4 6 3 13 The cost types shown above are identified by behavior as: Type A Type B Type C A. Fixed Variable Semivariable B. Fixed Semivariable Variable C. Variable Semivariable Fixed D. Variable Fixed Semivariable E. Semivariable Variable Fixed Multiple Choice Choice A Choice B Choice C
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