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

Question

A cost that has characteristics of both a variable cost and a fixed cost is called aA) variable/fixed costB) mixed costC) discretionary costD) sunk cost

Carly Yoshida · Accepted Answer

Final Answer : B, Explanation :  A mixed cost has both variable and fixed elements. The fixed element of the mixed cost is typically incurred regardless of the level of activity, while the variable element changes with the level of activity. This type of cost is also known as a semi-variable cost. Examples of mixed costs include utility bills, depreciation on equipment, and salaries of managers who receive a fixed salary plus a commission based on their level of sales.

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

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Learning Objectives

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