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

Costs and cost behaviour — practice question

To produce one unit of output, a business needs material that costs $1\,000. If 20 items are made, the overall material cost is $20\,000. Which term best identifies this cost?

  • Afixed cost
  • Bsemi variable cost
  • Cstepped cost
  • Dvariable cost

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