Which statement best describes mixed costs?
A) They stay the same regardless of output.
B) They decrease in total when output decreases.
C) They have the same cost behaviour as a step cost.
D) They vary in direct proportion to changes in output.

Question

Quizplus · Accepted Answer

Mixed costs consist of both fixed and variable components, so they decrease in total when output decreases due to the variable component.

Which Statement Best Describes Mixed Costs