Page 289 - F2 - MA Integrated Workbook STUDENT 2018-19

Statistical techniques

Test your understanding answers

Test your understanding 1

The graph below plots total cost against activity levels

Place the following labels in the correct place on the graph:

 Cost ($)

 Fixed cost

 Variable cost

 Activity (units)

Cost ($)

Gradient = Variable cost

Fixed
cost

Activity (units)

281