City Tours rents bicycles for $10 an hour with a maximum daily fee of $100.Make a table that shows the cost of renting a bicycle for 1, 3, 11, and 20 hours. Is time a function of cost? Explain.

The correct answer is: this concludes that time is not the function of cost.

Solution:-
We have given that City Tours rents bicycles for $10 an hour with a maximum daily fee of $100
We have to make a table that shows the cost of renting a bicycle for 1, 3, 11, and 20 hours
As the maximum fees is $100
The no of hours will be 100/10 = 10
Beyond 10 hours the charges will be same of $100.

So, For 1 hour = $10

3 hours = 3 x $10 = $30

10 hours = 10 x $10 = $100
Beyond 10 hours the charges will be $100 because they are the maximum daily fees.
So the table for the cost of renting a bicycle will be

Time for bicycle used in the given condition is not a function of cost because the standard cost is depending on the time for which bicycle is used
So, this concludes that time is not the function of cost.

As this question concluded, time is not a function of cost because the standard cost depends on the time for which the bicycle is rented. So, this concludes that time is not a function of cost. Apart from that, we should know which costs are time-based (rather than sales-based) and generally contractual.
According to the requirements, a firm's total costs can be classified into various categories. Product and period costs, fixed and variable costs, direct and indirect costs, manufacturing costs, administrative and selling expenses, and so on.
A firm's fixed or period costs are usually a function of time because they are incurred every period regardless of sales volume.
The following are some examples of fixed costs that are also contractual:
1) Manufacturing facility and administrative building rent costs
2) Salary payments made to employees
3) The cost of an annual contract signed with a third party for equipment maintenance, etc.
4) Bill for electricity and utilities for the administration building.