ECONOMICS

COST ACCOUNTING

COST BEHAVIORS

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
As volume changes, which of these costs could be considered a mixed cost?
A
sales commission expense
B
assembly line labor
C
salaries of the accountant
D
utilities at the manufacturing plant
Explanation: 

Detailed explanation-1: -A mixed cost contains a fixed base rate and a variable rate that fluctuates with use. For example, the fixed portion of your equipment lease is a flat $2, 000 charge to produce from zero to 10, 000 units. You are charged a variable cost of $1.50 for each unit produced over the 10, 000 production ceiling.

Detailed explanation-2: -Mixed costs are costs that contain a portion of both fixed and variable costs. Common examples include utilities and even your cell phone!

Detailed explanation-3: -A semi-variable cost, also known as a semi-fixed cost or a mixed cost, is a cost composed of a mixture of both fixed and variable components.

Detailed explanation-4: -A variable cost is a corporate expense that changes in proportion to how much a company produces or sells. Variable costs increase or decrease depending on a company’s production or sales volume-they rise as production increases and fall as production decreases.

There is 1 question to complete.