Which of the following is true of a mixed cost?
A) It does not change with a change in the level of output.
B) It cannot be separated into fixed and variable components.
C) It contains both a fixed and variable component.
D) All of these are correct.

Question

Which of the following is true of a mixed cost?​
A) It does not change with a change in the level of output.
B) It cannot be separated into fixed and variable components.
C) It contains both a fixed and variable component.
D) All of these are correct.

Quizplus · Accepted Answer

A mixed cost contains both fixed and variable components, meaning that it will change with a change in the level of output but not in a linear fashion. It can be separated into its fixed and variable portions using various cost estimation techniques.

Which of the Following Is True of a Mixed Cost?​

Which of the Following Is True of a Mixed Cost?