Given the following cost data, what type of cost is shown? $$\begin{array} { | l | l | }
\hline { \text { Total Cost } } & \text { Number of Units } \
\hline \$ 8,000 & 1 \
\hline \$ 8,500 & 2 \
\hline \$ 9,000 & 3 \
\hline \$ 9,500 & 4 \
\hline
\end{array}$$
A) mixed cost
B) variable cost
C) fixed cost
D) period cost

Question

Given the following cost data, what type of cost is shown? $$\begin{array} { | l | l | } 
\hline { \text { Total Cost } } & \text { Number of Units } \
\hline \$ 8,000 & 1 \
\hline \$ 8,500 & 2 \
\hline \$ 9,000 & 3 \
\hline \$ 9,500 & 4 \
\hline
\end{array}$$
A) mixed cost
B) variable cost
C) fixed cost
D) period cost

Quizplus · Accepted Answer

The cost increases by a constant amount as the number of units increases, indicating a mixed cost, which has both fixed and variable components.

Given the Following Cost Data, What Type of Cost Is