A mixed cost:
A) Requires the future outlay of cash and is relevant for future decision making.
B) Does not change with changes in the volume of activity within the relevant range.
C) Is directly traceable to a cost object.
D) Contains a combination of fixed costs and variable costs.
E) Has already been incurred and cannot be avoided so it is irrelevant for decision making.

Question

Quizplus · Accepted Answer

A mixed cost includes both fixed and variable components, meaning it will not remain constant for changes in activity levels. It is also relevant for future decision making, as it requires future outlays of cash. It may or may not be directly traceable to a cost object, and it is not necessarily an already incurred cost that cannot be avoided.

A Mixed Cost