9:26 AM O N a* ll 26A number of graphs displaying cost behaviorpatterns are shown below. The vertical axis oneach graph represents total cost and thehorizontal axis represents the level of activity(volume).23FPPE5101112 9:26 AM O -* ll 26For each of the following situations, identify thegraph that illustrates the cost behaviorpattern involved (any graph may be used morethan once). Just write the graph number thatrepresents the cost: for example if you think thatgraph#11 represents a cost then simply type 11in the box.a) Electricity bill – a flat fixed charge, plus avariable cost after a certain number ofkilowatthours are used.b) City water bill, where the first 1,000,000gallons or less is $1,000 flat fee; Next 10,000gallons are $0.003 per gallon used; Next 10,000gallons are $0.006 per gallon used; and Next10,000 gallons are $0.009 per gallon used; andso on...c) Depreciation of equipment, where the amountis computed by the reducing balance method.

A. Electricity bill graph is 6 as in this graph, the cost is constant for some specified volume and…

Answered: A number of graphs displaying cost…

A number of graphs displaying cost behavior patterns are shown below. The vertical axis on each graph represents total cost and the horizontal axis represents the level of activity (volume).

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.

Question

9:26 AM O N a
* ll 26
A number of graphs displaying cost behavior
patterns are shown below. The vertical axis on
each graph represents total cost and the
horizontal axis represents the level of activity
(volume).
2
3
FPPE
5
10
11
12

9:26 AM O -
* ll 26
For each of the following situations, identify the
graph that illustrates the cost behavior
pattern involved (any graph may be used more
than once). Just write the graph number that
represents the cost: for example if you think that
graph#11 represents a cost then simply type 11
in the box.
a) Electricity bill – a flat fixed charge, plus a
variable cost after a certain number of
kilowatthours are used.
b) City water bill, where the first 1,000,000
gallons or less is $1,000 flat fee; Next 10,000
gallons are $0.003 per gallon used; Next 10,000
gallons are $0.006 per gallon used; and Next
10,000 gallons are $0.009 per gallon used; and
so on...
c) Depreciation of equipment, where the amount
is computed by the reducing balance method.

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