Which of the following costs is a mixed cost?
A) Salary of a factory supervisor
B) Electricity costs of $3 per kilowatt-hour
C) Rental costs of $10,000 per month plus $.30 per machine hour of use
D) Straight-line depreciation on factory equipment

Question

Quizplus · Accepted Answer

Rental costs have a fixed component ($10,000 per month) and a variable component ($.30 per machine hour). This combination of fixed and variable costs makes it a mixed cost. The other options are either purely fixed (A and D) or purely variable (B) costs.

Which of the Following Costs Is a Mixed Cost