Accounting 9706 · AS & A Level · Costs and cost behaviour

Costs and cost behaviour — practice question

A business uses machinists to produce a single product. As demand rises, more machinists are taken on. Each time eight additional machinists are employed, one extra supervisor is required. How would total labour costs be best described?

  • Amachinists fixed, supervisors variable
  • Bmachinists stepped, supervisors variable
  • Cmachinists variable, supervisors fixed
  • Dmachinists variable, supervisors stepped

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