Chapter 21, Problem 1QS

To determine

Variable Cost:

The cost which changes with the change in level of activity is called a variable cost.

Fixed Cost:

Fixed Cost is rigid in nature and does not change according to the change in the level of activity.

Step-Wise Costs:

Step-wise costs do not changes within a range of level of activity, and changes in lump sum when the level of activity goes beyond the range.

Curvilinear cost:

The costs which increases or decreases in an inconsistent or irregular manner are called curvilinear cost.

To determine:

Identifying each series as fixed, variable, step-wise, or curvilinear cost