A cost that includes both fixed and variable cost components is called a:
A) Step-variable cost.
B) Mixed cost.
C) Curvilinear cost.
D) Differential cost.
E) Composite cost.

Question

Quizplus · Accepted Answer

A mixed cost contains both a fixed and a variable component. This is different from a strictly fixed cost, which remains the same regardless of changes in production levels, and a strictly variable cost, which increases or decreases proportionally with production levels. A mixed cost can be a bit more difficult to analyze due to the presence of both fixed and variable components, but it is an important concept for understanding how costs behave in different production environments.

A Cost That Includes Both Fixed and Variable Cost Components