Total mixed cost is represented by which of the following equations?
A)y = vx
B)y = vx + f
C)y = f
D)y = v + f

Question

Quizplus · Accepted Answer

Total mixed cost is represented by the equation y = vx + f, where y is the total cost, v is the variable cost per unit, x is the level of activity, and f is the fixed cost. This equation shows that the total cost is a combination of a fixed cost component and a variable cost component that increases with the level of activity. Choice B is the only option that includes both a variable cost component (vx) and a fixed cost component (f).

Total Mixed Cost Is Represented by Which of the Following