Paige Corporation observed that when 25,000 units were sold, a particular cost amounted to $75,000, or $3.00 per unit.When volume increased by 10%, the cost totaled $82,500 (i.e., $3.00 per unit).The cost that Paige is studying can best be described as a:

Question

Quizplus · Accepted Answer

The cost is directly affected by the change in volume, meaning it varies with the level of activity. As volume increased by 10%, the cost increased by $7,500, indicating that it is a variable cost.

Paige Corporation Observed That When 25,000 Units Were Sold, a Particular