An Electricity Bill Is an Example of Mixed Costs

question 34

True/False

An electricity bill is an example of mixed costs.The fixed portion represents the cost of having the service available and the variable cost is reflective of actual customer usage.

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Definitions:

Sarbanes-Oxley Act

A U.S. law enacted in 2002 to protect investors by improving the accuracy and reliability of corporate disclosures.

Harsh Penalties

Severe consequences or punishments imposed for violations of rules or laws.

Liquidity

The ease with which an asset can be converted into cash without affecting its market price.

Long-Term Obligations

Financial commitments or debts that are due for repayment beyond the current fiscal year.