Question: PROBLEM 3-13 Identifying Cost Behavior Patterns [L01] A number of graphs displaying cost behavior patterns are shown below. The vertical axis on graph represents total
PROBLEM 3-13 Identifying Cost Behavior Patterns [L01] A number of graphs displaying cost behavior patterns are shown below. The vertical axis on graph represents total cost, and the horizontal axis represents level of activity (volume) Required: 1. For each of the following situations, identify the graph below that illustrates the cost bet pattern involved. Any graph may be used more than once. a. Cost of raw materials used. Electricity bill-a flat fixed charge, plus a variable cost after a certain n kilowatt-hours are used. City water bill, which is computed as follows: b. c. First 1,000,000 gallons or less. $1,000 flat fee Next 10,000 gallons .........$0.003 per gallon used Next 10,000 gallons..........$o.006 per gallon used Next 10,000 gallons . . . Etc. $0.009 per gallon used Etc
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