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

Costs and cost behaviour — practice question

A company is sorting its costs into categories. It finds that, for any output level from $10000$ to $15000$ units, the freight cost for each unit remains fixed at $2$ per unit. What type of cost is this?

  • Afixed cost
  • Bsemi-variable cost
  • Cstepped fixed cost
  • Dvariable cost

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