Question

12. The graph shown below best describes which of the following cost patterns? the cost of fuel for a fleet of trucks the cost of water for the local golf course a. b. the cost of computer time for an insurance company where there is a charge of $500 per period plus $.10 per minute of connect time the cost of a typing service where the charge is $1.00 per page up to 100 pages then $.30 per page for pages above 100. C. d. 13. The following activity and cost levels were observed: Activity Total Cost A 3,000 units $1,000 $400 $1,500 4,000 units $1,300 $400 1,000 units $400 $400 $500 Total Cost B $2,000 Total Cost C Respectively, costs A, B, and C would be classified as: variable, fixed, variable mixed, mixed, mixed mixed, fixed, mixed mixed, fixed, variable а. b. C. d. 14. The graph shown below is most likely to describe which of the following cost patterns? property taxes for a manufacturing plant salary cost for the head chef ina French restaurant energy cost for a hotel cost of direct materials а. b. с. d.

Answer 1

12.d.the cost of a typing service where the charges is $1.00 per page up to 100 pages then $0.30 per page for pages above 100.

the given graph increases at a decreasing rate after a point, so it mostly represents option D, which increase at a lower rate of $0.30 per page after 100 pages.

13.D.mixed, fixed,variable.

cost A is mixed since it increases with increasing units but not in proportion.

cost B is fixed since it remains same for all levels of activity.

cost C is variable since it increases proportionally with increase in activity.

14.c.energy cost for a hotel.

since energy cost will be a mixed cost and the graph is a representation of mixed cost.

option a and B are fixed costs.

option d is a variable cost.