The formula, Electricity cost = $10 + ($0.08 × kwh used) is the formula for a
A)mixed cost.
B)fixed cost.
C)step cost.
D)variable cost.

Question

Quizplus · Accepted Answer

This formula represents a mixed cost because it includes both a fixed component ($10) and a variable component ($0.08 × kwh used). The fixed cost does not change with the level of activity, while the variable cost changes in proportion to the level of activity (kwh used in this case).

The Formula, Electricity Cost = $10 + ($0