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Reference: 06-01
Rymore Company Would Like to Classify the Following

Question 5

Multiple Choice

Reference: 06-01
Rymore Company would like to classify the following costs according to their cost behaviour:  July  August  Sales in units 1,5001,600 Cost A $35,000$36,000 Cost B 16,00016,000 Cost C 67,50072,000\begin{array} { | l | l | l | } \hline & \text { July } & \text { August } \\\hline \text { Sales in units } & 1,500 & 1,600 \\\hline & & \\\hline \text { Cost A } & \$ 35,000 & \$ 36,000 \\\hline \text { Cost B } & 16,000 & 16,000 \\\hline \text { Cost C } & 67,500 & 72,000 \\\hline\end{array}
-Which of the following classifications best describes the behaviour of Cost B


A) Fixed.
B) Direct.
C) Mixed.
D) Variable.

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