Question

Identify the following behavior of Cost: Monthly production costs in Dilts Company for two levels of...

Identify the following behavior of Cost:

Monthly production costs in Dilts Company for two levels of production are as follows.

Cost

2,000 Units

4,000 Units

Indirect Labor

10000

20000

Supervisory Salaries

5000

5000

Maintenance

4000

6000

Advertising

25000

25000

Delivery Worker

14000

16000
Business   Accounting   
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Answer #1

The three basic cost behavior patterns are known as variable, fixed, and mixed --

A variable cost describes a cost that varies in total with changes in volume of activity.

A fixed cost describes a cost that is fixed (does not change) in total with changes in volume of activity.

The term mixed cost describes a cost that has a mix of fixed and variable costs.

Table for identified the behaiviour of cost-

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