Which of the Following Costs Is a Mixed Cost

question 101

Multiple Choice

Which of the following costs is a mixed cost?

• A)Salary of a factory supervisor
• B)Electricity costs of $2 per kilowatt-hour
• C)Rental costs of $5,000 per month plus $0.30 per machine hour of use
• D)Straight-line depreciation on factory equipment

---

Definitions:

Consumption

The process of using goods and services to fulfill needs or desires, typically referring to the end-use of products by individuals or households.

Mass Production

The manufacturing of large quantities of standardized products, often on assembly lines, enabling economies of scale.

Operations Management

This sector of management deals with formulating and managing the processes involved in producing and innovating business operations for the production of goods or services.