The following cost graphs illustrate various types of cost behavior:
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0 Total Units Produced
$
0 Total Units Produced
Cost Graph One Cost Graph Two
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0 Total Units Produced
For each of the following costs, identify the cost graph that best illustrates its cost behavior as the number of units produced increases.
a. Total direct materials cost
b. Electricity costs of $1,000 per month plus $0.10 per kilowatt-hour
c. Per-unit cost of straight-line depreciation on factory equipment
d. Salary of quality control supervisor, $20,000 per month
e. Per-unit direct labor cost
Answer:
a. Cost Graph Three
b. Cost Graph Four
c. Cost Graph One
d. Cost Graph Two
e. Cost Graph Two