Select the appropriate cost behaviour for the following costs incurred by a bicycle manufacturer.
-Cost of inspections
A)Variable
B)Fixed

Question

Quizplus · Accepted Answer

The cost of inspections for a bicycle manufacturer is typically considered a variable cost because it tends to increase with the number of units produced. More bicycles manufactured means more inspections are needed, thus increasing the cost proportionally.

Select the Appropriate Cost Behaviour for the Following Costs Incurred