A mixed cost will be an effective cost driver.

Name: A mixed cost will be an effective cost driver.
Brand: Quizplus
Rating: 4.9 (33 reviews)

Question

Quizplus · Accepted Answer

A mixed cost consists of both fixed and variable elements, but it is not an effective cost driver as it is difficult to accurately determine how much of the cost is variable and how much is fixed. Therefore, it is not useful in predicting future costs. Cost drivers typically only include variable costs that are directly tied to the activity or unit being measured.

A Mixed Cost Will Be an Effective Cost Driver