What is an equipment lease that specifies a payment of $5,000 per month plus $8 per machine hour used an example of?
A)a fixed cost
B)a variable cost
C)a step cost
D)a mixed cost

Question

Quizplus · Accepted Answer

The equipment lease specifies a fixed cost component of $5,000 per month and a variable cost component of $8 per machine hour used. This is an example of a mixed cost, which includes both fixed and variable elements.

What Is an Equipment Lease That Specifies a Payment of $5,000