Asked by Margaret Galeener on Jun 09, 2024
Verified
A mixed cost has characteristics of both a variable and a fixed cost.
Mixed Cost
A cost that contains both fixed and variable components and changes in total with the level of activity, but not proportionately.
Variable Cost
Expenses that change in proportion to the activity of a business, such as production volume or units sold.
Fixed Cost
Costs that remain constant regardless of the amount of goods produced or sold, like lease payments or employee wages.
- Understand the concepts of variable, fixed, and mixed costs.
Verified Answer
Learning Objectives
- Understand the concepts of variable, fixed, and mixed costs.
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