The type of cost relationship that exists when costs include both a fixed portion and a portion that varies in a straight-line manner with the level of a cost driver (within some relevant range of output) is:
A) Fixed responsiveness
B) Proportional responsiveness
C) Semi-variable cost relationship
D) Step cost relationship

Question

Quizplus · Accepted Answer

A semi-variable cost relationship, also known as a mixed cost, has a fixed portion and a variable portion that changes in a linear manner with the level of a cost driver. This cost relationship is common in many businesses, such as manufacturing or service industries, where there are fixed costs associated with maintaining facilities or equipment and variable costs that increase with the level of production or activity.

The Type of Cost Relationship That Exists When Costs Include