Two types of costs that each combine fixed cost and variable cost behaviors are ________ and ________.
A) capacity costs; incremental costs
B) semi-fixed costs; semivariable costs
C) composite costs; average costs
D) step costs; mixed costs

Question

Quizplus · Accepted Answer

Step costs and mixed costs are two types of costs that combine fixed cost and variable cost behaviors.
- Step costs have a fixed cost component for a specific range of activity, but increase in steps as activity levels increase beyond that range.
- Mixed costs have both a fixed and a variable component, but the variable component does not increase proportionally with activity levels.

Two Types of Costs That Each Combine Fixed Cost and Variable