Consider the following equation:
Total cost = fixed costs + (cost driver rate × cost driver quantity)
If a cost can be estimated using this equation,it is probably a:
A) fixed cost
B) variable cost
C) mixed or semivariable cost
D) non-linear cost

Question

Quizplus · Accepted Answer

The equation includes both fixed costs and a cost driver, indicating that the cost is mixed or semivariable, meaning it has both fixed and variable components.

Consider the Following Equation