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25 November, 13:34

Two costs at Bradshaw Company appear below for specific months of operation. Month Amount Units Produced Delivery costs September $ 40,000 40,000 October 55,000 60,000 Utilities September $ 84,000 40,000 October 126,000 60,000 Which type of costs are these?

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  1. 25 November, 17:07
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    The correct answer is "Delivery cost are mixed and utilities are variable"

    Explanation:

    Delivery total cost = (Fixed cost + variable cost)

    Utilities = (variable cost) If you sold more, your utilities would increase

    A fixed cost is a cost that does not change with an increase or decrease independently of the number of products produced or sold.

    Variable costs increase or decrease depending on a company's production volume or sell.
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