To be useful to management accountants for planning and predictive purposes, mixed costs
A)must be classified into their fixed and variable elements.
B)must be classified into their direct and indirect elements.
C)must be classified into their product and period elements.
D)none of these.

Question

Quizplus · Accepted Answer

Mixed costs have both fixed and variable elements, and in order for management accountants to use them for planning and predicting purposes, they must be able to separate these elements in order to calculate the total cost at different levels of activity. Classifying them into direct and indirect elements or product and period elements is not relevant to determining the cost behavior of mixed costs.

To Be Useful to Management Accountants for Planning and Predictive