Mixed cost is computed using the formula Total Cost = Fixed Cost + (Variable Rate × Output).The _____ explains changes in the dependent variable of the mixed cost formula.
A) sum of the fixed cost and the variable cost
B) difference of the total cost and the fixed cost
C) units of output
D) variable rate of cost per unit

Question

Quizplus · Accepted Answer

The units of output variable represent the independent variable in the mixed cost formula and explain the changes in the dependent variable (total cost). The fixed cost and variable rate are constant and do not change with the level of production. The difference between total cost and fixed cost is the total amount of variable cost. Therefore, option C is the correct choice.

Mixed Cost Is Computed Using the Formula Total Cost =