Which of the following would always be a mixed (semivariable) cost for a firm?
A) Raw materials because it includes direct and indirect materials
B) Direct labour
C) Manufacturing overhead
D) Raw materials AND manufacturing overhead

Question

Quizplus · Accepted Answer

Manufacturing overhead typically includes both fixed and variable components, making it a mixed or semivariable cost. This category can encompass a wide range of expenses, such as utilities, depreciation, and maintenance, which do not vary directly with production volume in the same way that direct materials or direct labor costs do.

Which of the Following Would Always Be a Mixed (Semivariable)