With mixed costs,the ________ element is unchanged over the relevant range and the ________ element varies proportionately with cost-driver activity.
A) variable cost; fixed cost
B) fixed cost; variable cost
C) fixed cost; step cost
D) step cost; variable cost

Question

Quizplus · Accepted Answer

With mixed costs, the fixed cost element remains the same regardless of the level of activity within the relevant range, while the variable cost element varies proportionately with cost-driver activity. Therefore, option B correctly identifies the fixed cost as the first element and the variable cost as the second element.

With Mixed Costs,the ________ Element Is Unchanged Over the Relevant