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An example of a cost likely to have a mixed behavior pattern is:

a) depreciation of production equipment.
b) raw material cost
c) electricity cost for the manufacturing plant
d) sales force commission

User Teebes
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Final answer:

The cost with a mixed behavior pattern is c) electricity cost for the manufacturing plant, as it includes both fixed and variable components depending on the level of production.

Step-by-step explanation:

An example of a cost likely to have a mixed behavior pattern is c) electricity cost for the manufacturing plant. Electricity cost tends to have a fixed component, as there is a minimum bill to keep the service connected, and a variable component that changes with the level of production activity. Fixed costs represent expenditures that do not change regardless of the level of production, such as rent on a factory, whereas variable costs are costs that vary with production output, such as raw materials and labor.

We can see the mixed cost behavior in an electricity bill for a manufacturing plant where a portion of the total cost is fixed and does not change with the level of production, and another portion varies directly with production volume. For high levels of production, the additional consumption of electricity is likely necessary; however, if production is stopped, there is still a basic charge for electricity.

User Joshua Evensen
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