A mixed cost
A) will vary in direct proportion to changes in output.
B) stays the same regardless of output.
C) has the same cost behavior as a step cost.
D) will decrease in total when output decreases.

Question

Quizplus · Accepted Answer

Mixed costs consist of a fixed component and a variable component. As output decreases, the total mixed cost decreases due to the variable component decreasing, even though the fixed component remains constant.

A Mixed Cost