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Based on the Following Cost Data,what Conclusions Can You Make

Question 20

Multiple Choice

Based on the following cost data,what conclusions can you make about the costs of Product A and Product B?  Total Cost  Production:  Product A  Product B 10 units $100?100 units $1,000?1,000 units $10,000? Unit Cost  Production:  Product A  Product B 10 units ?$10,000100 units ?$1,0001,000 units ?$100\begin{array}{l}\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\text { Total Cost }\\\begin{array}{|l|c|c|}\hline \text { Production: } & \text { Product A } & \text { Product B } \\\hline 10 \text { units } & \$ 100 & ? \\\hline 100 \text { units } & \$ 1,000 & ? \\\hline 1,000 \text { units } &{\$ 10,000} & ? \\\hline & {\text { Unit Cost }} \\\hline \text { Production: } & \text { Product A } & \text { Product B } \\\hline 10 \text { units } & ? & \$ 10,000 \\\hline 100 \text { units } & ? & \$ 1,000 \\\hline 1,000 \text { units } & ? & \$ 100 \\\hline\end{array}\end{array}


A) The cost of Product A is a fixed cost and the cost of Product B is a variable cost.
B) The cost of Product A is a variable cost and the cost of Product B is a fixed cost.
C) The costs of Product A and Product B are both variable costs.
D) The costs of Product A and Product B are both mixed costs.

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