Use the information below to answer the following question(s).Big Island Coffee Co.produced and sold 120,000 units last year.Per unit revenue and costs were as follows:
Fixed manufacturing overhead and administrative salaries are fixed costs.The per unit amounts are based on last year's production.
-A mixed cost is
A)a fixed cost.
B)a cost with fixed and variable elements.
C)a variable cost.
D)always an indirect cost.
E)a cost with direct and indirect elements.

Question

Use the information below to answer the following question(s).Big Island Coffee Co.produced and sold 120,000 units last year.Per unit revenue and costs were as follows:
  Fixed manufacturing overhead and administrative salaries are fixed costs.The per unit amounts are based on last year's production.
-A mixed cost is
A)a fixed cost. 
B)a cost with fixed and variable elements. 
C)a variable cost. 
D)always an indirect cost. 
E)a cost with direct and indirect elements.

Quizplus · Accepted Answer

A mixed cost is a cost that has both fixed and variable elements. In this case, the fixed manufacturing overhead and administrative salaries are fixed costs, while the per unit revenue and costs are variable costs.

Use the Information Below to Answer the Following Question(s)