A cost that includes both fixed and variable cost components is called a:
A)Mixed cost.
B)Step-variable cost.
C)Composite cost.
D)Curvilinear cost.
E)Differential cost.

Question

Quizplus · Accepted Answer

A mixed cost includes both fixed and variable costs. This means that a portion of the cost remains constant regardless of the level of activity, while another portion increases or decreases with the level of activity. Examples of mixed costs include a utility bill, where there is a fixed monthly charge plus variable charges based on usage, or a cell phone plan with a base monthly fee plus charges for additional data or minutes used.

A Cost That Includes Both Fixed and Variable Cost Components