The results below represent what form of cost behavior?
A) Fixed Cost
B) Variable Cost
C) Mixed Cost
D) Opportunity Cost

Name: The results below represent what form of cost behavior? A) Fixed Cost B) Variable Cost C) Mixed Cost D) Opportunity Cost
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Question

The results below represent what form of cost behavior? 
A) Fixed Cost 
B) Variable Cost 
C) Mixed Cost 
D) Opportunity Cost

Quizplus · Accepted Answer

Cost per unit in Year 1: $11,250 ÷ 4,500 units = $2.50
Cost per unit in Year 2: $12,000 ÷ 4,800 units = $2.50
When the volume increases, the cost per unit of stayed the same; as such, the cost is a variable cost.

The Results Below Represent What Form of Cost Behavior