COST ACCOUNTING
COST BEHAVIORS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Employee paid basic wage plus commission based on production quantity
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rent of the factory workshop
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print ink used for letterhead and logos
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Detailed explanation-1: -General Mixed Cost Examples Utilities including electricity, water and natural gas are usually mixed costs. You are charged a fixed rate for using a base amount and then pay an additional variable charge for any usage over the base amount.
Detailed explanation-2: -Wage costs for employees who are paid a monthly salary plus commissions are a good example of mixed costs. This is a common compensation package for salesmen and sales reps. They usually receive a small base salary and commissions based on how many sales they make during the period.
Detailed explanation-3: -Examples of mixed costs include rent, insurance, management fees, salaries, salaries plus bonuses, and utilities. So, mixed costs are not purely fixed or variable costs but are a combination of both.