Figure 3-6. Taran Company incurred the following costs for the months of January and February.
Refer to Figure 3-6.From the information above we can assume that
A)insurance and depreciation are fixed costs.
B)output decreased from January to February.
C)output stayed the same from January to February.
D)insurance is a mixed cost.

Question

Figure 3-6. Taran Company incurred the following costs for the months of January and February.
 Refer to Figure 3-6.From the information above we can assume that
A)insurance and depreciation are fixed costs. 
B)output decreased from January to February. 
C)output stayed the same from January to February. 
D)insurance is a mixed cost.

Quizplus · Accepted Answer

Insurance and depreciation are typically considered fixed costs, as they do not vary with changes in output or production levels. The data in the chart does not provide any indication of changes in output, so we cannot conclude whether output stayed the same or decreased from January to February. The information provided does not allow us to determine whether insurance is a mixed cost.