Economics · Cost Accounting
A transport company tracks fuel consumption. When plotting total fuel cost against distance driven (in kilometers), the graph starts above the origin and initially rises steeply, but the gradient slightly flattens after 15,000 km, and then returns to a steeper gradient after 25,000 km. This behavior is best modeled as:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
Share:
- 1A complex step cost, with the initial fixed element being the standing charge.
- 2A semi-variable cost exhibiting a change in the variable cost element per unit.✓
- 3A semi-variable cost with a discount applying to all units above 15,000 km.
- 4A fixed cost up to 15,000 km, then a semi-variable cost.
Correct answer
A semi-variable cost exhibiting a change in the variable cost element per unit.
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 Economics?
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 Economics · Cost Accounting