A cost that has both a fixed and variable component is called a:
A) step cost.
B) mixed cost.
C) product cost.
D) relevant cost.

Question

Quizplus · Accepted Answer

A mixed cost has both a fixed and variable component. A step cost is one that changes at specific levels of activity, a product cost is the cost of producing a specific product, and a relevant cost is a cost that is relevant in making a specific business decision.

A Cost That Has Both a Fixed and Variable Component