Mixed Costs Must Be Divided into Which of the Following

question 38

Multiple Choice

Mixed costs must be divided into which of the following components?

• A)Period and product
• B)Fixed and variable
• C)Direct and indirect
• D)Cost and profit

---

Definitions:

Acquisition Differential

The difference between the cost of the acquisition and the fair value of the net assets acquired in a business combination.

Equity Method

An accounting technique used by a company to record its investment in another company when it has significant influence but not full control.

Unamortized

Describes a portion of a loan or bond or other asset that has not yet been written off or paid down through periodic payments.

Patents

Legal rights granted to inventors, allowing them exclusive use and exploitation of their inventions for a certain period.