Dizzy Amusement Park is open from 8:00 am till midnight every day of the year. Dizzy charges its patrons a daily entrance fee of $30 per person which gives them unlimited access to all of the park's 35 rides.For liability insurance, Dizzy pays a set monthly fee plus a small additional amount for every patron entering the park. The cost of liability insurance would best be described as a:
A) fixed cost
B) mixed cost
C) step-variable cost
D) true variable cost

Question

Quizplus · Accepted Answer

The cost of liability insurance is a mixed cost as it consists of a fixed portion (monthly fee) and a variable portion (additional amount for every patron entering the park).

Dizzy Amusement Park Is Open from 8:00 Am Till Midnight