Mixed costs are costs thatGroup of answer choicescomprise both fixed and variable costsdecrease with production volumeremain constant with changes in production volumeincrease with production volume
Question
Mixed costs are costs thatGroup of answer choicescomprise both fixed and variable costsdecrease with production volumeremain constant with changes in production volumeincrease with production volume
Solution
Mixed costs are costs that comprise both fixed and variable costs.
Here's a step-by-step explanation:
-
Fixed costs: These are costs that do not change with the level of output. For example, the rent for a factory or a retail store is a fixed cost because it stays the same whether the business produces one unit or thousands of units.
-
Variable costs: These are costs that change with the level of output. For example, the cost of raw materials is a variable cost because the more units a business produces, the more raw materials it needs.
-
Mixed costs: These are costs that have both fixed and variable components. For example, a utility bill might have a fixed component (the base charge for service) and a variable component (the additional charge for the amount of electricity used).
So, mixed costs are costs that comprise both fixed and variable costs. They do not just decrease or increase with production volume, nor do they remain constant with changes in production volume.
Similar Questions
What type of costs increase or decrease in total with the budgeted volume of activity but remain constant when expressed on a per unit basis?Multiple choice question.Mixed costsVariable costsFixed costsDiscretionary costs
Which costs remain constant in total as the budgeted volume of activity changes, but they could change as a result of the managerial decision-making process?Multiple choice question.Variable costsFixed costsMixed costsLabor costs
45.A change in total cost caused by adding one more unit to the production total is called: A. Fixed cost. B. Variable cost. C. Marginal cost D. Total cost
Which of the following terms describes a cost that changes with the level of output?Fixed CostVariable CostSunk CostOpportunity Cost
Choose the term that most appropriately completes the following statements: Blank 1 are costs that can be easily or physically traced to a particular cost object.Direct material and direct labour are combined to form Blank 2Blank 3 is a cost that varies, in total, in direct proportion to changes in the level of activity or volume.Fixed costs per unit will Blank 4 when the level of activity increases.Semi-variable costs include an amount that is fixed within a relevant range of output and an amount that varies Blank 5 with output changes.Blank 6 is a cost that remains constant, in total, regardless of changes in the level of activity within the relevant range.Blank 7 are potential benefit that is given up when one alternative is selected over another.Blank 8 are cost that have already been incurred as a result of past decision and have a zero value when making future decisions.Blank 9 are those costs that are identified with products manufactured.Direct labour and manufacturing overheads are combined to form Blank 10 , which represent the cost of converting direct material into finished products.
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.