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This is my final, please please double check your answer thank you so much QUESTION : Choose the correct description of variable and fixed costs.?
This is my final, please please double check your answer thank you so much
Homework: Assignment 2: Chpt 2 Intro. to Cost. Terms HW Score: 09%, 0 of 100 pts Q2-5 (book/static) i as a sales commission that is a pencentage of each sales revenue dolar. A xed cost remains unchanged in total for a given m period despite wide danges inthe mated waloftotal actvity or vono, such as a need annua to it in an economicaly feasble way, such as the salary of a plant manager who oversees production of many different tyes of haurycas produced af the same pant Cear All QUESTION :
"Choose the correct description of variable and fixed costs.?"
ANSWERS:
A) A variable cost is considered to be a unit cost, such as the per-attendee-cost of hiring a musical group to perform at an event. A fixed cost is considered to be a total cost, such as the total fee paid to the musical group for performing at the event.
B) A variable cost changes in total in proportion to changes in the related level of total activity or volume, such as a sales commission that is a percentage of each sales revenue dollar. A fixed cost remains unchanged in total for a given timeperiod, despite wide changes in the related level of total activity or volume, such as a fixed annual leasing cost of a machine.
C) A variable cost is related to a particular cost object and can be traced to it in an economically feasible way, such as the cost of steel in the manufacturing of a luxury car. A fixed cost is related to a particular cost object but cannot be traced to it in an economically feasible way, such as the salary of a plant manager who oversees production of many different types of luxury cars produced at the same plant.
D) All of the above.
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