Which of the following costs would be classified as a mixed cost?

₹0.0

Question: Which of the following costs would be classified as a mixed cost?

Options:

Correct Answer: Electricity bill with a fixed service charge and variable usage charge

Solution:

A mixed cost has both fixed and variable components, such as an electricity bill.

Which of the following costs would be classified as a mixed cost?

Which of the following costs would be classified as a mixed cost?

Step 1: Understand what a mixed cost is. A mixed cost has two parts: a fixed part that stays the same and a variable part that changes based on usage.
Step 2: Identify examples of costs. Look for costs that have a base amount plus an amount that varies with usage.
Step 3: Recognize that an electricity bill is a common example of a mixed cost. It has a fixed charge (the base fee) and a variable charge (based on how much electricity is used).
Step 4: Compare other costs to see if they have both fixed and variable components. If they do, they are also mixed costs.

No concepts available.