Assuming costs are represented on the vertical axis and volume of activity on the horizontal axis, which of the following costs would be represented by a line that is parallel to the horizontal axis?
A)total direct material costs
B)a consultant paid £75 per hour with a maximum fee of £1,200
C)employees who are paid £10 per hour and guaranteed a minimum weekly wage of £200
D)rent on exhibit space at a convention

Question

Quizplus · Accepted Answer

Rent on exhibit space at a convention does not vary with volume of activity and remains constant. Therefore it would be represented by a line parallel to the horizontal axis.

Assuming Costs Are Represented on the Vertical Axis and Volume