Data for Cost A and Cost B appear below: Which of the above best describes the behavior of Costs A and B?
A)Cost A is fixed,Cost B is variable.
B)Cost A is variable,Cost B is fixed.
C)Both Cost A and Cost B are variable.
D)Both Cost A and Cost B are fixed.

Question

Data for Cost A and Cost B appear below:  Which of the above best describes the behavior of Costs A and B?
A)Cost A is fixed,Cost B is variable. 
B)Cost A is variable,Cost B is fixed. 
C)Both Cost A and Cost B are variable. 
D)Both Cost A and Cost B are fixed.

Quizplus · Accepted Answer

Cost A is varying as the level of output changes, while Cost B remains constant, regardless of the level of output. This indicates that Cost A is a variable cost, while Cost B is a fixed cost.

Data for Cost a and Cost B Appear Below