Classify the total costs of each of the following as
-Overhead costs in the factory for incidental components such as small screws and rivets.
A) Variable
B) Fixed
C) Mixed
D) Step

Question

Quizplus · Accepted Answer

Variable costs change with the level of production output, and since small screws and rivets are used more as production increases, their costs are considered variable. They are not fixed, mixed, or step costs because their total cost directly varies with the number of units produced.

Classify the Total Costs of Each of the Following as