Following are five graphs representing various cost behaviors. (1) Identify whether the cost behavior in each graph

Question:

Following are five graphs representing various cost behaviors.

(1)  Identify whether the cost behavior in each graph is mixed, step-wise, fixed, variable, or curvilinear.

(2)  Identify the graph (by number) that best illustrates each cost behavior:

     (a)  Factory policy requires one supervisor for every 30 factory workers;
     (b)  real estate taxes on factory;

     (c)  electricity charge that includes the standard monthly charge plus a charge for each kilowatt hour;

     (d)  commissions to salespersons; and

     (e)  costs of hourly paid workers that provide substantial gains in efficiency when a few workers are added but gradually smaller gains in efficiency when more workers are added

Step by Step Answer:

Related Book For  book-img-for-question

Fundamental Accounting Principles

ISBN: 978-0078110870

20th Edition

Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta

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