Kocher Steel typically achieves one of three production levels in any given year: 8 million pounds of steel,10 million pounds of steel,or 16 million pounds of steel.In tracking some of its costs,Kocher Steel's controller discovered one cost that was $10 per pound at a production level of 8 million pounds,$8 per pound at a production level of 10 million pounds,and $5 per pound at a production level of 16 million pounds.This is an example of a
A) variable cost.
B) fixed cost.
C) semivariable cost.
D) semifixed cost.
Correct Answer:
Verified
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