The following diagram represents the behaviour of one element of cost:Which one of the following descriptions is consistent with the above diagram?
A、Annual total cost of factory power where the supplier sets a tariff based on a fixed charge plus a constant unit cost for consumption which is subject to a maximum annual charge.
B、Total annual direct material cost where the supplier charges a constant amount per unit which then reduces to a lower amount per unit after a certain level of purchases.
C、Total annual direct material cost where the supplier charges a constant amount per unit but when purchases exceed a certain level a lower amount per unit applies to all purchases in the year.
D、Annual total cost of telephone services where the supplier makes a fixed charge and then a constant unit rate for calls up to a certain level. This rate then reduces for all calls above this level.
A、Annual total cost of factory power where the supplier sets a tariff based on a fixed charge plus a constant unit cost for consumption which is subject to a maximum annual charge.
B、Total annual direct material cost where the supplier charges a constant amount per unit which then reduces to a lower amount per unit after a certain level of purchases.
C、Total annual direct material cost where the supplier charges a constant amount per unit but when purchases exceed a certain level a lower amount per unit applies to all purchases in the year.
D、Annual total cost of telephone services where the supplier makes a fixed charge and then a constant unit rate for calls up to a certain level. This rate then reduces for all calls above this level.
【参考答案及解析】
Options B and C would begin from 0 and are clearly incorrect. Option A would be similar to the graph given except it would be flat at the top due to the maximum annual charge.
Options B and C would begin from 0 and are clearly incorrect. Option A would be similar to the graph given except it would be flat at the top due to the maximum annual charge.