Using account analysis, what type of cost is Satellite TV when the charge is $45.00 per month plus $5.99 for pay-per-view movies?
A)Mixed
B)Fixed
C)Step
D)Variable

Question

Quizplus · Accepted Answer

Satellite TV is a mixed cost because it has both fixed and variable components. The $45.00 per month charge is a fixed cost since it remains the same regardless of the number of pay-per-view movies watched. The $5.99 charge for pay-per-view movies, on the other hand, is a variable cost since it increases with the number of movies watched. Therefore, this cost has both fixed and variable components, making it a mixed cost.

Using Account Analysis, What Type of Cost Is Satellite TV