What is the formula to calculate a mixed cost?
A)total cost = variable rate × amount of output
B)total cost = total fixed cost + (variable rate × amount of output)
C)total cost = fixed rate × amount of output
D)total cost = total fixed cost - (variable rate × amount of output)

Question

Quizplus · Accepted Answer

A mixed cost includes both fixed and variable components. The fixed component remains constant regardless of the level of output, while the variable component changes with the level of output. Therefore, the formula to calculate a mixed cost is total cost = total fixed cost + (variable rate × amount of output).

What Is the Formula to Calculate a Mixed Cost