What type of cost exhibits the behaviour that follows? $\begin{array} { | c | c | }
\hline \begin{array} { c }
\text { Manufacturing } \
\text { Volume } \
\text { (Units) }
\end{array} & \text { Cost Per Unit } \
\hline 50.000 & \$ 1.95 \
\hline 70.000 & 1.95 \
\hline
\end{array}$
A)Variable cost.
B)Fixed cost.
C)Curvilinear cost.
D)Discretionary fixed cost.
E)Step-fixed cost.

Question

What type of cost exhibits the behaviour that follows? $\begin{array} { | c | c | } 
\hline \begin{array} { c } 
\text { Manufacturing } \
\text { Volume } \
\text { (Units) }
\end{array} & \text { Cost Per Unit } \
\hline 50.000 & \$ 1.95 \
\hline 70.000 & 1.95 \
\hline
\end{array}$
A)Variable cost.
B)Fixed cost.
C)Curvilinear cost.
D)Discretionary fixed cost.
E)Step-fixed cost.

Quizplus · Accepted Answer

Variable costs remain constant per unit regardless of the level of production, as shown in the table where the cost per unit is $1.95 for both 50,000 and 70,000 units.

What Type of Cost Exhibits the Behaviour That Follows A)Variable Cost