For the purpose of analysis, mixed costs are generally:
A) classified as fixed costs.
B) classified as variable costs.
C) classified as period costs.
D) separated into their variable and fixed cost components.

Question

Quizplus · Accepted Answer

Mixed costs have both a fixed and variable component, so for analysis purposes, they should be separated into their variable and fixed cost components. This allows for a better understanding of how changes in production or activity levels affect the total cost of the mixed cost item.

For the Purpose of Analysis, Mixed Costs Are Generally