Asked by Carolyn Lemon-Lewis on May 25, 2024
Verified
A cost that has characteristics of both a variable cost and a fixed cost is called a
A) variable/fixed cost
B) mixed cost
C) discretionary cost
D) sunk cost
Mixed Cost
A cost that contains both fixed and variable components, changing with the level of activity but not in direct proportion.
Variable Cost
Variable cost refers to expenses that change directly with the level of production or business activity, such as raw materials and labor costs.
Fixed Cost
Expenses that do not change with the level of production or sales activity, such as rent or salaries.
- Acquire knowledge about and understand the distinctions between variable, fixed, and mixed costs.
- Analyze and categorize costs as variable, fixed, or mixed.
Verified Answer
Learning Objectives
- Acquire knowledge about and understand the distinctions between variable, fixed, and mixed costs.
- Analyze and categorize costs as variable, fixed, or mixed.
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