Accounting · Cost Accounting
A diagram represents the behaviour of one cost element: it shows a line starting from a positive y-intercept, sloping upward, and then becoming horizontal at a maximum level (costs rise to a cap). Which of the following scenarios is consistent with this diagram?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
Share:
- 1Total direct material cost for a period where the supplier charges a constant amount per unit for all units supplied up to a maximum charge
- 2Total direct material cost for a period if the supplier charges a lower unit cost on all units once a certain quantity has been purchased
- 3Weekly total labour cost when there is a fixed wage for a standard 40-hour week but overtime is paid at a premium rate
- 4Annual factory power cost where the electricity supplier sets a tariff based on a fixed charge plus a constant unit cost for consumption, subject to a maximum annual charge✓
Correct answer
Annual factory power cost where the electricity supplier sets a tariff based on a fixed charge plus a constant unit cost for consumption, subject to a maximum annual charge
Download Single Question PDF
Save this question and verified answer as a clean study sheet with live clickable link.
👥
Share with Friends & Study Groups
Challenge your peer aspirants on WhatsApp or Telegram to solve this question!
Online Test Series
Start Free Mock Test →Preparing for Accounting?
Practice full-length mock tests with real exam timers, instant score analysis, and all-India ranking.
Chapter Practice
Practice Cost Accounting MCQs →Want more practice questions on Cost Accounting?
Solve complete topic-wise tests with detailed solutions on GkGet.
Related Practice Questions
Recommended practice questions in Accounting · Cost Accounting