Chapter 18, Problem 2QS

To determine

Fixed Cost:

Fixed cost refers the cost which remains constant for particular time duration and there is no effect on it of the level of production.

Variable Cost:

Variable cost refers the cost which varies due to the change in the level of production. Higher production level refers higher the variable cost, and lower production level refers lower the variable cost.

Mixed Cost:

A combination of fixed and variable cost is known as mixed cost or total cost.

To identify: Whether the statement indicates fixed cost, variable cost or mixed cost.