The equation that best describes a mixed cost is:
A)Y = f - vX
B)Y = f + vX
C)Y = f + v + X
D)Y = fv + X
E)None of the answer choices is correct.

Question

Quizplus · Accepted Answer

The equation Y = f + vX best describes a mixed cost, where Y is the total cost, f is the fixed cost component, v is the variable cost per unit, and X is the number of units. Mixed costs consist of both fixed and variable components.

The Equation That Best Describes a Mixed Cost Is