Some costs have both a fixed and a variable component.These costs are referred to as
A)discretionary costs.
B)committed costs.
C)mixed costs.
D)step costs.

Question

Quizplus · Accepted Answer

Mixed costs have both a fixed and a variable component, and the total cost increases as the level of activity increases. Discretionary costs are costs that a business can choose to incur or not, such as advertising or research and development. Committed costs are costs that are ongoing and cannot be easily changed, such as rent or salaries. Step costs increase in steps or increments as the level of activity increases.

Some Costs Have Both a Fixed and a Variable Component