The cost function y = $10,000:
A)represents a mixed cost.
B)represents a fixed cost.
C)represents a variable cost.
D)is a constant that does not account for costs.
E)is a variance that has changes in activities.

Question

Quizplus · Accepted Answer

A cost function that remains constant at all levels of activity is a fixed cost. In this case, the cost function is a constant value of $10,000, regardless of the level of activity.

The Cost Function Y = $10,000