Repair bills for large machinery may include a flat fee for the visit to the company's premises plus additional labor charges per hour of repair work and various costs of replacement parts needed.What type of cost is the repair?
A)Selling cost
B)Variable cost
C)Fixed cost
D)Mixed cost

Question

Quizplus · Accepted Answer

Repair costs are a mixed cost as they include both fixed and variable components. The flat fee for the visit and the cost of replacement parts are fixed costs, while the labor charges per hour of repair work are variable costs. Therefore, repair costs are considered a mixed cost.

Repair Bills for Large Machinery May Include a Flat Fee