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<p>You are given the cost and volume information below:Volume to Cost</p> <p>1 unit --$15</p> <p>10 units--$150</p> <p>100 units--$1500</p>
It is B ... it is a variable cost ...1 unit = $15 ...10 units will be $150 ...100 units= $1500
Variable costs are those costs that vary depending on a company's production volume; they rise as production increases and fall as production decreases. Variable costs differ from fixed costs such as rent, advertising, insurance and office supplies, which tend to remain the same regardless of production output.
Fixed costs are expenses that have to be paid by a company, independent of any business activity. It is one of the two components of the total cost of a good or service, along with variable cost.
When the Total Cost per Unit is Constant even with variations in level of production
the type of cost is: Variable.
The given data as per the question,characterized by the above feature(s).
Here the cost stay unvariable then fixed.
Option A.
b.
It is the variable costs (B)
it is strange but they are called variable costs, the explanation of misess woofter, says it all
Option B
