A Mixed Cost

question 166

Multiple Choice

A mixed cost

• A)remains constant when the output level increases.
• B)cannot be separated.
• C)contains both a fixed and variable component.
• D)all of these are correct

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Definitions:

Production Cost

The direct and indirect expenses incurred to manufacture goods or provide services.

Equivalent Units

A concept in cost accounting used to denote the amount of work done on incomplete units, expressed in terms of fully completed units.

Physical Units

A measure of production output or inventory in terms of the actual number of units, as opposed to the cost or value of the units.

Percentage of Completion

A method of accounting for long-term contracts in which income is recognized as a proportion of work completed at certain stages.