Question

For the purpose of analysis, mixed costs are generally ______.
A. classified as fixed costs
B. classified as variable costs
C. classified as period costs
D. separated into their variable and fixed cost components

Answer 1

Answer:

D.

Explanation:

A mixed cost contains both variable and fixed elements. Sometimes called semi-variable cost.

cost are fixed for a set level of production or consumption, becoming variables after the level is exceeded.

Increases or decreases after maintaining a fixed level of expense.

For example, utilities that charge a set fee per month, plus a charge for usage. Cell phone bill.