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Refer to the exhibit.
Which ONE of the following can be represented by this graph?
Suggested Answer: D
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26 comments · newest first
BE
Belen
6 months ago
I agree with B. Total costs increase as more units are produced.
PE
Pete
6 months ago
I'm leaning towards D. Variable costs change with production levels.
CA
Callie
6 months ago
I feel it's C. Semi-variable costs have fixed and variable components.
RE
Regenia
6 months ago
I think it's A. Fixed costs don't change with output.
FA
Fatima
6 months ago
This graph seems off for a fixed cost, right?
QU
Quentin
7 months ago
Wait, is that really how variable costs are shown?
CO
Colene
7 months ago
I thought it could be semi-variable too, but not sure.
CH
Charlena
7 months ago
Definitely option D, can't be anything else.
RO
Robt
7 months ago
Looks like a variable cost graph to me!
SH
Sheridan
7 months ago
Variable cost per unit would be a weird way to represent it, so I'm going with B.
GE
Gene
7 months ago
Haha, I bet the exam writer is trying to trick us with these similar-sounding options. Gotta stay on our toes!
GE
Gearldine
8 months ago
The graph doesn't look like a fixed cost, so B or D could be the right answer.
TA
Talia
8 months ago
I agree, the linear relationship between the activity level and total cost points to a variable cost.
TR
Trevor
8 months ago
Option B seems correct, the graph shows a variable cost where the total cost incurred increases as the activity level rises.
EM
Emelda
9 months ago
I feel like the vertical axis being total cost incurred could help identify it as a variable cost, but I need to double-check my notes.
KE
Kenneth
9 months ago
I’m leaning towards option C, but I can't recall how to differentiate between semi-variable and variable costs clearly.
PH
Phung
9 months ago
I remember practicing a similar question where we had to identify fixed vs. variable costs based on graphs. This one feels tricky!
AN
Angelyn
9 months ago
I think this graph might show a variable cost, but I'm not sure if it's total cost or cost per unit on the vertical axis.
SH
Sherly
9 months ago
This is a tricky one, but I think I've got it. The linear relationship and the fact that the line doesn't pass through the origin means it's not a fixed cost. And since the vertical axis is showing total cost, not cost per unit, I'm going to go with option C, a semi-variable cost.
DE
Derick
9 months ago
I'm a bit confused by this question. The graph doesn't seem to match the options very well. I'll need to re-read the question and the options carefully to make sure I understand what they're asking for.
VI
Vincenza
10 months ago
Okay, I think I've got this. The linear relationship and the fact that the line doesn't pass through the origin suggests it's a semi-variable cost, where the vertical axis is showing total cost incurred. I'm going with option C.
LO
Loreta
10 months ago
Hmm, the graph has a linear relationship, so it's probably not a fixed cost. I'm leaning towards it being a variable cost, but I'm not confident about whether the vertical axis is showing cost per unit or total cost.
VA
Vanda
10 months ago
This graph looks like it could represent a variable cost, but I'm not sure if the vertical axis is showing cost per unit or total cost. I'll need to think through the options carefully.
TA
Tasia
4 months ago
Good point! We need to analyze the graph more closely.
GO
Goldie
4 months ago
But is it cost per unit or total cost?
RO
Roosevelt
6 months ago
I think it’s definitely a variable cost.