Question

Choose the graph for each of the following cost behaviours in each graph, they should be tal costs and the xaxis should be volume of activity Question d Mixed b Flored . Variable Curvilinear a Choose the correct graph for Step cost behaviour СА. OB . Ос. OD OE Total Coat

plz donot answer it i got it done already

Answer 1

Answer.

When a stepped cost is plotted on a graph (with the total cost represented by the y-axis and the quantity of the activity represented by the x-axis) the lines will appear as steps or stairs rising from left to right. ... A stepped cost is also referred to as a step cost, a step-variable cost, or a step-fixed cost.

Variable cost have the direct relationship of level of activity with the total cost.

Fixed costs are costs which do not change with change in output as long as the production is within the relevant range. It is the cost which is incurred even when output is zero.

A semi-variable cost is a cost that contains both fixed and variable cost elements. The fixed element of the cost will be incurred repeatedly over time, while the variable element will only be incurred as a function of activity volume.

Option A : variable cost graph.

Option B : step cost graph.

Option C :fixed cost graph.

Option D : mixed or semi variable cost graph.

Option E : curvelinear cost graph.

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