Mathematics · Cost Accounting & Cost Behaviour
A company prepared flexed budgets at two activity levels. The cost per unit of three costs behaves linearly with respect to activity. At 10,000 units, the cost per unit is: X = $3.0, Y = $1.0, Z = $3.5. At 15,000 units, the cost per unit is: X = $2.0, Y = $1.0, Z = $3.0. Classify the behavior of costs X, Y, and Z respectively.
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1X is Fixed, Y is Variable, Z is Fixed
- 2X is Fixed, Y is Variable, Z is Semi-Variable✓
- 3X is Variable, Y is Fixed, Z is Variable
- 4X is Variable, Y is Fixed, Z is Semi-Variable
Correct answer
X is Fixed, Y is Variable, Z is Semi-Variable
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