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.
Number of $\begin{array}{lrrr}\text { Machine Setups }& \text { Cost A } & \text { Cost } \mathrm{B} &\operatorname{Cost} \mathrm{C}\\hline
0& \$ 5 & \$ 80 & \$ 5 \
10 & 20 & 79 & 37 \
20 & 40 & 82 & 66 \
30 & 60 & 78 & 91 \
40 & 80 & 81 & 123 \
50 & 100 & 79 & 154
\end{array}$
Cost A is best described as:
A) Fixed
B) Variable
C) Mixed
D) Direct

Question

Quizplus · Accepted Answer

Cost A increases consistently with the number of machine setups, indicating it varies directly with the activity level, which is characteristic of variable costs.

Consider the Following Cost Data for the Cost Object; Number