Which of the following is the formula used to calculate a mixed cost?
A) Total Cost = Total Fixed Cost + (Fixed Cost Rate × Amount of Output)
B) Total Cost = Total Fixed Cost + Total Variable Cost
C) Total Cost = Variable Rate × Amount of Output
D) None of these are correct.

Question

Quizplus · Accepted Answer

Mixed costs consist of both fixed and variable components. The formula to calculate a mixed cost is Total Cost = Total Fixed Cost + Total Variable Cost, where the total fixed cost remains constant regardless of output levels, and the total variable cost changes in proportion to the level of output.

Which of the Following Is the Formula Used to Calculate