Answer:
C. Step variable cost
Explanation:
Fixed costs are those costs which are incurred anyways irrespective of the level of operation of a business or the volume of activity. For example rent of factory is a fixed cost which has to be incurred regardless of the production level.
Variable costs are those costs which vary with the level of production. e.g labor cost.
In this case, a T- shirt is given to every 100th customer. This kind of cost is step cost at the level of 100th customer. The number of T-shirts in a day would depend upon the no of patrons arriving each day i.e variable.
Thus, this is the case of a step variable cost which is incurred at discrete point i.e every 100th customer.
Mr. Simpson has the rights to remove the limb from his property because although the tree is residing in Mr. Jones' property, it does not mean that Mr. Simpson has no rights when the limbs of the tree has occupied his lot. He has the right to do so because the limbs are in his lot, which means he could also has the right to do what he wants with it. If the limbs of the tree was not on his property, then it is only right that he does not meddle with the tree or remove it.
<span>Conversion Cost
You can call this the cost of changing the goods into buyable items . These costs are the blend of direct work costs in addition to assembling overhead expenses.
You can consider conversion costs as the assembling or generation costs important to change over crude materials into items. Communicated another way, conversion costs are a maker's item or generation costs other than the expenses of crude materials.</span>
