Page 277 - BA2 Integrated Workbook STUDENT 2018
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Supplementary objective test questions
2.3 Which one of the following descriptions is consistent with the diagram
shown?
$
Total
cost
Volume of
0
activity
A Annual total cost of factory power where the supplier sets a tariff based on a
fixed charge plus a constant unit cost for consumption which is subject to a
maximum annual charge.
B Total annual direct material cost where the supplier charges a constant
amount per unit which then reduces to a lower amount per unit after a
certain level of purchases.
C Total annual direct material cost where the supplier charges a constant
amount per unit but when purchases exceed a certain level a lower amount
per unit applies to all purchases in the year.
D Annual total cost of telephone services where the supplier makes a fixed
charge and then a constant unit rate for calls up to a certain level. This rate
then reduces for all calls above this level.
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