A cost is $50,000 when 25,000 units are produced,and $100,000 when 50,000 units are produced.This is an example of a(n):
A)fixed cost.
B)direct cost.
C)variable cost.
D)indirect cost.

Question

Quizplus · Accepted Answer

The cost increases as the number of units produced increases, indicating that the cost is directly related to the level of production. This is characteristic of a variable cost.

A Cost Is $50,000 When 25,000 Units Are Produced,and $100,000