What type of cost exhibits the behavior shown below? $\begin{array}{rrr}\text { Manufacturing } & \text { Total } & \text { Cost } \
\text { Volume (Units) } & \text { Cost } & \text { Per Unit }\
50,000 & \$ 150,000 & \$ 3.00 \
80,000 & 150,000 & 1.88
\end{array}$
A) Variable cost.
B) Fixed cost.
C) Semivariable cost.
D) Step-variable cost.
E) Mixed cost.

Question

Quizplus · Accepted Answer

The total cost remains constant at $150,000 regardless of the increase in manufacturing volume, indicating it is a fixed cost.

What Type of Cost Exhibits the Behavior Shown Below A) Variable Cost