Consider the following cost data for the cost object, number of machine setups. Each set of costs (A, B, and C) is from a different type of manufacturing operation and represents the cost behaviour for the cost of that company's machine setups. Cost C is best described as: $\begin{array}{c}
\begin{array}{c}
\text {Number of}\
\underline{\text { Machine Setups}}\
0 \
10 \
20 \
30 \
40 \
50
\end{array}
\begin{array}{c}
\
\underline{\text { Cost A }} \
\$ 0 \
20 \
40 \
60 \
80 \
100
\end{array}
\begin{array}{c}
\
\underline{\text { Cost B }} \
\$ 80 \
79 \
82 \
78 \
81 \
79
\end{array}
\begin{array}{c}
\
\underline{\text { Cost C} } \
\$ 5 \
37 \
66 \
91 \
123 \
154
\end{array}
\end{array}$

A) Mixed
B) Variable
C) Fixed
D) Indirect

Question

Consider the following cost data for the cost object, number of machine setups. Each set of costs (A, B, and C) is from a different type of manufacturing operation and represents the cost behaviour for the cost of that company's machine setups. Cost C is best described as: $\begin{array}{c}
\begin{array}{c}
\text {Number of}\
\underline{\text { Machine Setups}}\
0 \
10 \
20 \
30 \
40 \
50
\end{array}
\begin{array}{c}
\
\underline{\text { Cost A }} \
\$ 0 \
20 \
40 \
60 \
80 \
100
\end{array}
\begin{array}{c}
\
\underline{\text { Cost B }} \
 \$ 80 \
79 \
82 \
78 \
81 \
79
\end{array}
\begin{array}{c}
\
\underline{\text { Cost C} } \
\$ 5 \
37 \
66 \
91 \
123 \
154 
\end{array}
\end{array}$

A) Mixed
B) Variable
C) Fixed
D) Indirect

Quizplus · Accepted Answer

Cost C increases as the number of machine setups increases, but it starts with a base cost of $5 even when there are no setups. This indicates a combination of fixed and variable costs, which is characteristic of mixed costs.

Consider the Following Cost Data for the Cost Object, Number