A 'mixed cost' is:
A)a variable cost.
B)always an indirect cost.
C)a fixed cost.
D)a cost with fixed and variable elements.

Question

Quizplus · Accepted Answer

A mixed cost is a cost that has both fixed and variable elements. For example, a phone bill may have a fixed monthly fee and a variable usage fee. Another example is a salesperson's salary, which may include a fixed base salary and a variable sales commission. Therefore, a mixed cost cannot be classified as solely a variable cost, a fixed cost, or an indirect cost.

A 'Mixed Cost' Is