Which statement is true concerning mixed costs?
A)Mixed costs have both fixed and random components.
B)Mixed costs have both random and variable components.
C)Mixed costs have both fixed and variable components.
D)Mixed costs have either fixed or variable components.

Question

Quizplus · Accepted Answer

Mixed costs have both fixed and variable components. Fixed costs are those that do not change with the level of production or sales, while variable costs do change. Mixed costs consist of both fixed and variable components, making them partially fixed and partially variable. This means that a mixed cost will have a fixed portion that remains constant regardless of the level of activity, and a variable portion that increases or decreases with the level of activity.

Which Statement Is True Concerning Mixed Costs