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Which of the following statements regarding graphs of fixed and variable costs is true?

<p>a. Variable costs can be represented by a straight line where costs are the same for eachdata point.b. Fixed costs can be represented by a straight line starting at the origin and continuingthrough each data point.c. Fixed costs are zero when production is equal to zero.d. Variable costs are zero when production is equal to zero.e. Fixed and Variable costs are curvilinear form above zero on the “Y” axis.</p>

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Question added by Vinod Jetley , Assistant General Manager , State Bank of India
Date Posted: 2014/11/09
Divyesh Patel
by Divyesh Patel , Assistant Professional Officer- Treasury , City Of Cape Town

Option D

VENKITARAMAN KRISHNA MOORTHY VRINDAVAN
by VENKITARAMAN KRISHNA MOORTHY VRINDAVAN , Project Execution Manager & Accounts Manager , ALI INTERNATIONAL TRADING EST.

D. When the production is not started the Variable cost is NIL

Elke Woofter
by Elke Woofter , Project Assistant , American Technical Associates

I agree ...my answer is also Option D

Sahar Alech
by Sahar Alech , Auditor / Financial Manager , Accounting Services Office

" D "

georgei assi
by georgei assi , مدير حسابات , المجموعة السورية

d. Variable costs are zero when production is equal to zero

Vinod Jetley
by Vinod Jetley , Assistant General Manager , State Bank of India

d.

Ibrahim Hussein Mayaleh
by Ibrahim Hussein Mayaleh , Sales & Business Consultant and Trainer , Self-employed

It is D

Alex Al Yazouri
by Alex Al Yazouri , General Manager , Al Mushref Cooperative Society

d.>>>>>>>>>>>>>>>. Variable costs are zero when production is equal to zero.

Mohamed belabbes
by Mohamed belabbes , SENIOR SHIPPING SUPERVISOR , Naftec- Arzew refinery- SONATRACH-

a. Variable costs can be represented by a straight line where costs are the same for eachdata point

Ahammed Nizar Mulk
by Ahammed Nizar Mulk , Secondary School Teacher , Ministry Of Education - Maldives

D for variable cost, means no production no cost vary.

Fawzy Ahmed Salim El-Shabiby
by Fawzy Ahmed Salim El-Shabiby , Accountant , Servtel Information, Security, and Telecommunication Network Limited

Ans: (D)

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