Brandt Cheque Encoders employs 30 individuals.Ten employees are paid $10 per hour for 173 hours a month and the rest are salaried employees paid $6,000 a month.How would total costs of personnel be classified?
A)variable and fixed
B)a fixed cost within a relevant range
C)a variable cost within a relevant range
D)a mixed cost
E)a fixed cost

Question

Quizplus · Accepted Answer

The costs of personnel at Brandt Cheque Encoders are a mixed cost. This is because the company has both hourly and salaried employees, resulting in a combination of fixed costs (salaried employees) and variable costs (hourly employees).

Brandt Cheque Encoders Employs 30 Individuals