Marger, Inc., provided the following data for two recent months:$\begin{array}{lrr}
&\text { April }&\text {May }\
\text { Sales in Units.} &3,200&4,500 \
\text { Cost: } &\
\text { Cost T} &5,600&5,600 \
\text {Cost U } &4,480&6,300\
\text { Cost 'W } & 3,950&5,250\
\end{array}$

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Which of the following classifications best describes the behavior of Cost U

A)Variable
B)Fixed
C)Mixed
D)None of the above

Question

Marger, Inc., provided the following data for two recent months:$\begin{array}{lrr}
&\text { April }&\text {May }\
  \text {  Sales in Units.} &3,200&4,500 \
 \text { Cost: } &\
 \text {  Cost T} &5,600&5,600 \
 \text {Cost U  } &4,480&6,300\
 \text { Cost 'W } & 3,950&5,250\
\end{array}$

-
Which of the following classifications best describes the behavior of Cost U

A)Variable
B)Fixed
C)Mixed
D)None of the above

Quizplus · Accepted Answer

Cost U changes with the level of activity (number of units produced), indicating it is a variable cost. Fixed costs remain constant regardless of the level of activity, and mixed costs have both fixed and variable components. None of the above is not a valid answer as the cost must fit into one of these classifications.

Marger, Inc - Which of the Following Classifications Best Describes the Behavior

Marger, Inc -
Which of the Following Classifications Best Describes the Behavior