What is the best way to categorize the cost


Question: Terry's T-shirt shop determined that the costs associated with each shirt it sells total $4 per shirt. In 1 month, Terry sells 100 shirts and incurs $400 in costs; the next month, Terry sells 150 shirts and incurs $600 in costs. What is the best way to categorize this cost? a.) Step cost b.) Variable cost c.) Mixed cost d.) Fixed cost

 

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Accounting Basics: What is the best way to categorize the cost
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