The following graph indicates which type of cost behaviour?
A) Fixed
B) Mixed
C) Step
D) Variable

Name: The following graph indicates which type of cost behaviour? A) Fixed B) Mixed C) Step D) Variable
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Question

The following graph indicates which type of cost behaviour? 
A) Fixed 
B) Mixed 
C) Step 
D) Variable

Quizplus · Accepted Answer

The graph shows that the cost remains constant until a certain point and then jumps to a higher level. This indicates step cost behaviour, where the cost remains fixed within a certain range of activity levels and then suddenly increases when a certain threshold is reached.

The Following Graph Indicates Which Type of Cost Behaviour