The cost for a salesperson that is paid a flat salary of $2,000 per month plus a 3% commission on all sales is an example of what type of cost?
A) Fixed cost
B) Variable cost
C) Step cost
D) Mixed cost

Question

Quizplus · Accepted Answer

This is an example of a mixed cost because it includes both a fixed component (the flat salary of $2,000 per month) and a variable component (the 3% commission on all sales). Mixed costs consist of both fixed and variable elements.

The Cost for a Salesperson That Is Paid a Flat