A cost that has both a ﬁxed and variable component is known as a:
A)step-ﬁxed cost.
B)step-variable cost.
C)semivariable cost.
D)curvilinear cost.
E)discretionary cost.

Question

Quizplus · Accepted Answer

A cost that has both a fixed and variable component is known as a semivariable cost. The fixed component represents a constant cost regardless of the level of production or sales, while the variable component varies in proportion to the level of production or sales. The term "step" is typically used to refer to costs that increase in discrete steps or increments, so choices A and B are incorrect. "Curvilinear cost" and "discretionary cost" are not relevant to the description given in the question.

A Cost That Has Both a ﬁXed and Variable Component