Question

Two costs at Bradshaw Company appear below for specific months of operation. Month Amount Units Produced Delivery costs September $ 40,000 40,000 October 55,000 60,000 Utilities September $ 84,000 40,000 October 126,000 60,000 Which type of costs are these?

Answer 1

The correct answer is "Delivery cost are mixed and utilities are variable"

Step-by-step explanation:

Delivery total cost = (Fixed cost + variable cost)

Utilities= (variable cost) If you sold more, your utilities would increase

A fixed cost is a cost that does not change with an increase or decrease independently of the number of products produced or sold.

Variable costs increase or decrease depending on a company's production volume or sell.