The total cost of materials, where the supplier charges $9/kg if 0-1000 kilograms are purchased, $8/kg if 1001-2000 kilograms are purchased, and $7/kg if 2001 or more kilograms are purchased, is a:
A) Fixed cost
B) Variable cost
C) Mixed cost
D) Stepwise linear cost

Question

Quizplus · Accepted Answer

The total cost of materials is a mixed cost because it has both fixed and variable components. The cost per kilogram changes at specific quantity thresholds, making it a stepwise linear cost as well.

The Total Cost of Materials, Where the Supplier Charges $9/kg