Costs that have both variable and fixed components are called ________.
A) fixed costs
B) variable costs
C) mixed costs
D) contribution costs

Question

Quizplus · Accepted Answer

Mixed costs, also known as semi-variable costs, contain both a fixed and a variable component. The fixed portion of the cost occurs regardless of the level of activity, while the variable portion varies with the level of activity. Examples of mixed costs include utility bills, maintenance and repair expenses, and salaries that include a base salary plus commissions or bonuses. Fixed costs (A) remain constant regardless of the level of activity, while variable costs (B) change in proportion to changes in the level of activity. Contribution costs (D) are not a commonly recognized cost classification.

Costs That Have Both Variable and Fixed Components Are Called