Question: Interpreting Cost Behavior Graphs The graphs below represent cost behavior patterns that might occur in a company's cost structure. The vertical axis represents total cost,

Interpreting Cost Behavior Graphs

The graphs below represent cost behavior patterns that might occur in a company's cost structure.

Interpreting Cost Behavior Graphs The graphs below represent cost behavior patterns that

The vertical axis represents total cost, and the horizontal axis represents activity output. Examine the graphs above. Required: As explained in this chapter, cost behavior patterns can be described as fixed, variable, semivariable, mixed, or step function in nature. Select the appropriate cost behavior pattern represented by each of the cost curves shown in graphs a. through l. Note that some of the graphs might represent a combination of multiple cost behavior patterns.

a.

b.

c.

d.

e.

f.

g.

h.

i.

j.

k.

l.

Interpreting Cost Behavior Graphs The graphs below represent cost behavior patterns that might occur in a company's cost structure. The vertical axis represents total cost, and the horizontal axis represents activity output. a. b. g h. k

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