Identify the gragh?
Identify the gragh?
Part a:
Total direct material cost increases or decreases in direct proportion to change in activity levels. The following cost graph three exhibits this relationship.
Part b:
Electricity cost is a mixed cost. Mixed costs contain both elements ie; fixed and variable cost elements. In the above electricity cost, $1,000 is a fixed cost element and $0.10 per kilowatt-hour is a variable cost element. Cost graph four exhibits the above relationship.
Part c:
Depreciation expense on factory equipment is a total fixed cost. Total fixed cost remains constant within the relevant range even if activity levels increase or decrease but per-unit fixed cost decreases with the increase in activity level and increases when there is a decrease in the activity level. Cost graph one exhibits this relationship.
Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and specify the other subparts (up to 3) you’d like answered.
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