In terms of cost behavior, telephone expense and direct materials are classified as
A) variable and fixed, respectively.
B) fixed and variable, respectively.
C) mixed and fixed, respectively.
D) mixed and variable, respectively.

Question

Quizplus · Accepted Answer

Telephone expense is typically considered a mixed cost because it includes both fixed monthly charges and variable charges based on usage. Direct materials are variable costs because they change directly with the level of production.

In Terms of Cost Behavior, Telephone Expense and Direct Materials