Question: Consider the following cost data for the cost object, number of machine setups. Each set of costs (A and B is from a different type
Consider the following cost data for the cost object, number of machine setups. Each set of costs (A and B is from a different type of manufacturing operation and represents the cost behavior for the cost of that companys machine setups.
Number of Machine Setups Cost A Cost B
0 $ 0 $80
10 20 80
20 40 80
30 60 160
40 80 160
50 100 160
Cost A is best described as
a. Fixed
b. Variable
c. Mixed
d. Direct
Cost B is best described as
a. Fixed
b. Variable
c. Mixed
d. Step-wise
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