Ali is a member of a family that consists of him, his father, his mother and his older brother. Each member of the family has his own mobile phone. Each mobile phone is on a post-paid plan, for which a monthly bill is received at the end of each month. The electricity, on the other hand, is provided to the entire house in general, with one bill is received at the end of each month. The father has recently received the electricity bill for the month. and wishes to do some analysis of electricity consumption. Assuming that the value of the electricity bill is calculated based on the number of kilowatts consumed with no subscription fees. In the above information, the cost of electricity to Ali is: a. An indirect mixed cost O b. A direct fixed cost С. An indirect fixed cost d. A direct, variable cost e. An indirect, variable cost

CONCEPTS IN FED.TAX.,2020-W/ACCESS
20th Edition
ISBN:9780357110362
Author:Murphy
Publisher:Murphy
Chapter3: Income Sources
Section: Chapter Questions
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Ali is a member of a family that consists of him, his father, his
mother and his older brother. Each member of the family has
his own mobile phone. Each mobile phone is on a post-paid
plan, for which a monthly bill is received at the end of each
month. The electricity, on the other hand, is provided to the
entire house in general, with one bill is received at the end of
each month. The father has recently received the electricity
bill for the month. and wishes to do some analysis of electricity
consumption. ASsuming that the value of the electricity bill is
calculated based on the number of kilowatts consumed with
no subscription fees. In the above information, the cost of
electricity to Ali is:
a.
An indirect mixed cost
O b. A direct fixed cost
С.
An indirect fixed cost
d. A direct, variable cost
e.
An indirect, variable cost
Transcribed Image Text:Ali is a member of a family that consists of him, his father, his mother and his older brother. Each member of the family has his own mobile phone. Each mobile phone is on a post-paid plan, for which a monthly bill is received at the end of each month. The electricity, on the other hand, is provided to the entire house in general, with one bill is received at the end of each month. The father has recently received the electricity bill for the month. and wishes to do some analysis of electricity consumption. ASsuming that the value of the electricity bill is calculated based on the number of kilowatts consumed with no subscription fees. In the above information, the cost of electricity to Ali is: a. An indirect mixed cost O b. A direct fixed cost С. An indirect fixed cost d. A direct, variable cost e. An indirect, variable cost
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