Question

Question 5 of 254.0 PointsKohler Manufacturing typically achieves one of three production levels in any given year: 8 million pounds of steel, 10 million pounds of steel, or 16 million pounds of steel. In tracking some of its costs, Kohler's controller discovered one cost that was $10 per pound no matter what the production level for the year. This is an example of aA. variable cost.B. fixed cost.C. semivariable cost.D. semifixed cost.Reset Selection

Answer 1

This is an example of a variable cost.

Step-by-step explanation:

Giving the following information:

Manufacturing typically achieves one of three production levels in any given year:

8 million pounds of steel.

10 million pounds of steel.

16 million pounds of steel.

One cost that was $10 per pound no matter what the production level for the year.

This is an example of a variable cost. Variable cost change with production when we calculate the total. In unitary bases, it maintains the same. Fixed costs change with production in unitary bases.