Some costs have both a fixed and a variable component.These costs are referred to as
A)Discretionary costs.
B)Committed costs.
C)Mixed costs.
D)Step costs.

Question

Quizplus · Accepted Answer

Mixed costs have a fixed and variable component that vary with changes in activity. Discretionary costs are optional expenses that can be cut, while committed costs are fixed and cannot be easily reduced. Step costs have fixed components but increase in steps when there are changes in activity.

Some Costs Have Both a Fixed and a Variable Component