Chapter 20, Problem 2E

Identify cost graphs

The following cost graphs illustrate various types of cost behavior:

For each of the following costs, identify the cost graph that best illustrates its cost behavior as the number of units produced increases:

1. A. Total direct materials cost
2. B. Electricity costs of $1,000 per month plus $0.10 per kilowatt-hour
3. C. Per-unit cost of straight-line depreciation on factory equipment
4. D. Salary of quality control supervisor, $20,000 per month
5. E. Per-unit direct labor cost