which of the following types of cost is shown in this table of cost data?

\begin{tabular}{cc}
cost per unit & number of units \\
\hline
\$6,000 & 1 \\
3,000 & 2 \\
2,000 & 3 \\
1,500 & 4
\end{tabular}

a. mixed cost
b. variable cost
c. period cost
d. fixed cost

Question

which of the following types of cost is shown in this table of cost data?

\begin{tabular}{cc}
cost per unit & number of units \\
\hline
\$6,000 & 1 \\
3,000 & 2 \\
2,000 & 3 \\
1,500 & 4
\end{tabular}

a. mixed cost
b. variable cost
c. period cost
d. fixed cost

Accepted Answer

{ "quality": "clear", "question_count": 1, "skills_matched": [ "step_cot", "multiple_choice_formatter", "explain_then_answer", "tutor", "mastery_adaptive_brevity" ], "needs_drawing": false, "concepts_used": [ "Fixed Cost", "Variable Cost", "Cost Classification" ], "new_concepts": [], "current_concepts": [ "Fixed Cost", "Variable Cost", "Cost Classification" ] } ## Calculate total cost for each level of activity Using the *Fixed Cost* and *Variable Cost* knowledge points $$ \begin{aligned} &\text{Total Cost} = \text{Cost per Unit} \times \text{Number of Units}\ &\text{For } 1 \text{ unit}: \$6,000 \times 1 = \$6,000\ &\text{For } 2 \text{ units}: \$3,000 \times 2 = \$6,000\ &\text{For } 3 \text{ units}: \$2,000 \times 3 = \$6,000\ &\text{For } 4 \text{ units}: \$1,500 \times 4 = \$6,000 \end{aligned} $$ ## Classify the cost behavior Using the *Cost Classification* knowledge point $$ \begin{aligned} &\text{Total Cost is constant at } \$6,000 \text{ across all activity levels.}\ &\text{Cost per unit decreases as activity increases.}\ &\text{Therefore, this is a fixed cost.} \end{aligned} $$

a. mixed cost

b. variable cost

c. period cost

d. fixed cost

{ "subject": "Business", "question_type": "Multiple Choice", "knowledge_point": [ "Business", "Accounting", "Cost Behavior Analysis" ] }

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Question

Explanation:

Calculate total cost for each level of activity

Classify the cost behavior

Answer: