A Cost That Includes Both Fixed and Variable Cost Components

question 34

Multiple Choice

A cost that includes both fixed and variable cost components is called a:

• A)Mixed cost.
• B)Step-variable cost.
• C)Composite cost.
• D)Curvilinear cost.
• E)Differential cost.

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Definitions:

Supply Costs

Expenses incurred in acquiring the goods or services needed to run a business, including raw materials, parts, and utilities.

Spending Variance

The difference between the actual amount spent and the amount that was budgeted for a particular period.

Square Feet

A unit of area measurement equal to a square that is one foot on each side, commonly used in real estate and interior planning.

Indirect Materials

Materials used in the support of the production process that are not easily traced to specific products, essential for maintaining production equipment.