The following data points are available.This is an example of a ________ cost.
$\begin{array}{ll}
\text { Units }&\text { Costs }\
600 & \$ 560 \
650 & \$ 565 \
800 & \$ 580 \
900 & \$ 590
\end{array}$
A) variable
B) fixed
C) mixed
D) none of the above

Question

Quizplus · Accepted Answer

The cost increases with the number of units, but not at a constant rate, indicating that there is a fixed cost component (which does not change with the level of output) as well as a variable cost component (which changes with the level of output). This combination of fixed and variable costs is characteristic of mixed costs.

The Following Data Points Are Available Units Costs 600$560650$565800$580900$590\begin{array}{ll}\text { Units }&\text { Costs }\\600 & \$ 560 \\650 & \$ 565 \\800 & \$ 580 \\900 & \$ 590\end{array} Units 600650800900​ Costs $560$565$580$590​

The Following Data Points Are Available $\begin{array}{ll}\text { Units }&\text { Costs }\\600 & \$ 560 \\650 & \$ 565 \\800 & \$ 580 \\900 & \$ 590\end{array}$