Which of the Following Components Are Included in a Mixed

question 15

Multiple Choice

Which of the following components are included in a mixed cost?

• A)A sunk cost and an opportunity cost
• B)A fixed cost and a variable cost
• C)A step cost and a semivariable cost
• D)A product cost and a period cost

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Definitions:

Inflationary Premium

A component of the money interest rate that reflects compensation to the lender for the expected decrease, due to inflation, in the purchasing power of the principal and interest during the course of the loan. It is determined by the expected rate of future inflation.

Consume Goods

The act of using up goods and services for personal needs or consumption.

Save Money

The practice of reducing expenditures or setting aside funds to increase financial security or for future use.

Net Present Value

Net Present Value (NPV) is a financial metric that calculates the present value of all cash flows associated with a project, including both inflows and outflows, to determine its profitability.