Mixed Costs

question 59

Multiple Choice

Mixed costs

• A)are step costs.
• B)in total, remain constant within a relevant range.
• C)have a fixed and variable component.
• D)on a per unit basis, are constant as activity increases or decreases.

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Definitions:

Net Income

The profit of a company after all expenses and taxes have been subtracted from revenue.

Cash Dividend

A payment made by a corporation to its shareholders, usually in the form of cash, out of its profits.

Free Cash Flow

The cash that a company generates after accounting for cash outflows to support operations and maintain its capital assets.

Net Income

The total earnings of a company after subtracting all expenses from revenue, including taxes and interest.