Multiple Choice
Assuming costs are represented on the vertical axis and volume of activity on the horizontal axis, which of the following costs would be represented by a line that starts at the origin and reaches a maximum value beyond which the line is parallel to the horizontal axis?
A) total direct material costs
B) a consultant paid $100 per hour with a maximum fee of $2,000
C) employees who are paid $15 per hour and guaranteed a minimum weekly wage of $300
D) rent on exhibit space at a convention
Correct Answer:

Verified
Correct Answer:
Verified
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