Question

A mixed cost is __________ when volume is zero, then a mixed cost also _________ in proportion to increases in volume.

Answer 1

A mixed cost is a cost that contains both fixed and variable components. When volume is zero, the fixed cost component of a mixed cost is still present, while the variable cost component is not. As volume increases, the variable cost component of a mixed cost also increases in proportion to the increase in volume.

Step-by-step explanation:

A mixed cost is a cost that contains both fixed and variable components. When volume is zero, the fixed cost component of a mixed cost is still present, while the variable cost component is not. As volume increases, the variable cost component of a mixed cost also increases in proportion to the increase in volume.