Match the cost behavior that is described with the proper cost type. The unit co

Question

Match the cost behavior that is described with the proper cost type. The unit cost of an item is $30 per unit when activity is 10,000 units and $15 per unit when activity is 20,000 units. The total cost of an item is $30,000 when activity is 10,000 units and $30,000 when activity is 20,000 units. The total cost of an item is $30,000 when activity is 10,000 units and $50,000 when activity is 20,000 units. 1. Variable cost 2. Fixed Cost The unit cost of an item is $30 per unit when activity is 10,000 units and $20 per unit when activity is 20,000 units 3. Mixed Cost The total cost of an item is $30,000 when activity is 10,000 units and $60,000 when activity is 20,000 units. The unit cost of an item is $30 per unit when activity is 10,000 units and $30 per unit when activity is 20,000 units.

Explanation / Answer

Variable cost is constant or same in per unit but varies in total with change in output

Fixed cost is constant in total but varies in per unit [ that is doesnot change with change in output]

Mixed cost is neither constant in total nor in per unit

A)Fixed cost ,since same in total    [10000*30 = 300000 or 15*20000 = 300000]

B)Fixed cost ,since same in total

C)Mixed cost,neither constant in per unit nor in total

D)Mixed cost ,neither constant in per unit nor in total

E)Variable cost ,constant in per unit [30000/10000 or 60000/20000 = $ 3 per unit]

F)Variable cost .

c)

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