Reference: 06-01
Rymore Company Would Like to Classify the Following

Reference: 06-01
Rymore Company would like to classify the following costs according to their cost behaviour: $$\begin{array} { | l | l | l | } \hline & \text { July } & \text { August } \\\hline \text { Sales in units } & 1,500 & 1,600 \\\hline & & \\\hline \text { Cost A } & \$ 35,000 & \$ 36,000 \\\hline \text { Cost B } & 16,000 & 16,000 \\\hline \text { Cost C } & 67,500 & 72,000 \\\hline\end{array}$$
-Which of the following classifications best describes the behaviour of Cost A

A) Mixed.
B) Variable.
C) Direct.
D) Fixed.

Correct Answer:

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