What is a feature of mixed costs?
A)They vary in direct proportion to changes in output.
B)They stay the same regardless of output.
C)They have the same cost behaviour as a step cost.
D)They decrease in total when output decreases.

Question

Quizplus · Accepted Answer

Mixed costs consist of a fixed component and a variable component. The total mixed cost will decrease when output decreases due to the variable component of the cost, which varies with the level of output.

What Is a Feature of Mixed Costs