Chapter 21, Problem 3E

To determine

Cost behavior analysis :

Cost behavior analysis means to study how the cost changes as the level of volume changes.

In the question there are 5 series of costs at different output levels. We have to identify each series of cost on the basis of their cost behavior at given volume.

Solutions:

1. Series A is Variable cost
2. Series B is Mixed cost
3. Series C is Curvilinear cost
4. Series D is Step-wise cost
5. Series E is Fixed cost