Mixed costs have both a fixed and a discretionary component.

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Mixed costs are costs that have both a fixed component and a variable component that changes with the level of activity. In addition, mixed costs may also have a discretionary component, which is a component of the cost that the manager has some control over, such as the level of spending on advertising or research and development. Therefore, mixed costs have both a fixed and a discretionary component.

Mixed Costs Have Both a Fixed and a Discretionary Component