Question

A cost that can be separated into fixed and variable components

is called a:
Group of answer choices
a.Fixed cost
b.Mixed cost
c.Step-variable cost
d.Variable cost

Answer 1

A cost that can be separated into fixed and variable components is called a Mixed cost. Mixed costs include both fixed and variable elements, meaning that a portion of the cost remains constant regardless of the level of production, while another portion varies with the level of production.

Step-by-step explanation:

A cost that can be separated into fixed and variable components is called a Mixed cost. Mixed costs include both fixed and variable elements, meaning that a portion of the cost remains constant regardless of the level of production, while another portion varies with the level of production. For example, consider a utility bill, which includes a fixed portion (e.g., monthly service charge) and a variable portion (e.g., usage charges based on consumption).