During the month of May there were 800 discharge abstracts processed at a cost of $0.90 per abstract for a total of $720.00. In June, 732 discharge abstracts were processed for a total cost of $658.80. This type of cost is known as
During the month of May there were 800 discharge abstracts processed at a cost of $0.90 per abstract for a total of $720.00. In June, 732 discharge abstracts were processed for a total cost of $658.80. This type of cost is known as
This cost is known as semi-variable. Semi-variable costs have both fixed and variable components. The fixed component is present regardless of the activity level, while the variable component changes with the level of activity. In this case, even though the cost per abstract is $0.90, the total cost changes with the number of abstracts processed, indicating it has both fixed and variable elements.
The correct answer is "Variable"