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

Question

Quizplus · Accepted Answer

Cost C increases with the number of machine setups, indicating a variable component, but it does not start at zero, suggesting a fixed component as well, making it a mixed cost.

Consider the Following Cost Data for the Cost Object; Number