Some Costs Have Both a Fixed and a Variable Component

question 24

Multiple Choice

Some costs have both a fixed and a variable component.These costs are referred to as

• A)Discretionary costs.
• B)Committed costs.
• C)Mixed costs.
• D)Step costs.

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Definitions:

Operating Investing

This key term is not clear; it may refer to investing activities in the context of a business's operations, but without further context, a precise definition cannot be provided.

Financing Activities

Transactions related to raising capital and repaying investors, including issuing debt, repurchasing shares, and paying dividends.

Acquisition of Land

The process of obtaining ownership or rights to use land through purchase, lease, or other means, often for business or investment purposes.

Common Stock

Common stock represents ownership shares in a corporation, offering voting rights and potential dividends to shareholders.