The formula for a mixed cost is
A)total cost = total variable cost + ( fixed rate x amount of output)
B)total cost = total fixed cost + (variable rate ´ amount of output)
C)total cost = variable rate ´ amount of output
D)none of these are correct

Question

Quizplus · Accepted Answer

The formula for a mixed cost includes both fixed and variable costs. Option B represents this by stating that the total cost is equal to the total fixed cost plus a variable rate multiplied by the amount of output. Option A is incorrect because it only includes the fixed rate, and Option C is incorrect because it only includes the variable rate without any fixed costs.

The Formula for a Mixed Cost Is