Chapter 5, Problem 4.1GAP

To determine

Concept introduction:

Variable Cost: Variable cost are those cost which directly varies when the output of material changes. Variable cost same on per unit basis. When output increases it increases and when output decreases it decreases.

Fixed Cost: Fixed cost is those cost which have no effect when there is change in output. Fixed cost remains same in totality. There is no effect on the fixed cost when output changes it remains same always in totality.

Mixed Cost: It is the cost which contains both fixed and variable cost. In mixed cost a part of variable and a part of fixed cost presents it also called semi-variable or semi-fixed cost.

To complete:

Prepare the cost data table.