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

Costs and cost behaviour — practice question

A business uses machinists to produce one type of product. As demand rises, more machinists are hired. For every additional eight machinists employed, one further supervisor is required. Which option gives the best description of total labour costs?

  • Amachinists: fixed; supervisors: variable
  • Bmachinists: stepped; supervisors: variable
  • Cmachinists: variable; supervisors: fixed
  • Dmachinists: variable; supervisors: stepped

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