Depicting two different types of costs


Problem: The graph below depicts two different types of costs. Questions related to the graph should be answered in the spaces provided.

2309_Different types of costs.jpg

a. The line H-B represents what type of cost? ______________________

b. Production at point J versus point L would __________ total variable costs.

c. Production at point J versus point L would __________ per unit fixed costs.

d. What is a possible reason that line G-A increases at point A to a new horizontal line?

e. What kind of cost is depicted by the line from point G to point A?

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Accounting Basics: Depicting two different types of costs
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