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A mixed cost contains Select one:

a. a variable element and a fixed element.
b. both selling and administrative costs.
c. both retailing and manufacturing costs.
d. both operating and nonoperating costs. Check

Respuesta :

letmeanswer

A mixed cost contains a variable element and a fixed element.

Option a

Explanation:

Mixed costs are those costs that has both variable and fixed component. Example: operating cost of a machinery includes fixed costs that cannot be changed with other variable costs like fuel, insurance, depreciation, etc.

It is also named as semi-variable costs. And the formula to calculate mixed cost is as follows,

[tex]y=a+b x[/tex]

where,

  • y is the "total cost "
  • a is the "fixed cost per period"
  • b is the "variable rate per unit of activity"
  • x is the "number of units of activity"

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