A cost that increases in total but decreases per unit as the cost driver increase is a(n):
A)Activity cost
B)Variable cost
C)Fixed cost
D)Mixed cost

Question

Quizplus · Accepted Answer

A mixed cost has both fixed and variable components. As the cost driver increases, the variable portion increases and the per unit cost decreases, while the fixed portion remains the same, causing the total cost to increase.

A Cost That Increases in Total but Decreases Per Unit