Select the appropriate type of cost for each of the definitions below.
-has both a variable and a fixed component
A)variable
B)fixed
C)mixed
D)step

Question

Quizplus · Accepted Answer

A cost that has both a variable and a fixed component is classified as a mixed cost. The fixed component is typically a recurring cost that does not vary with changes in production or sales volume while the variable component changes with production or sales volume. Examples of mixed costs include utilities, maintenance expenses, and salaries of production supervisors.

Select the Appropriate Type of Cost for Each of the Definitions