Some Costs Have Both a Fixed and a Variable Component

question 56

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.

---

Definitions:

Jewelers

Jewelers are professionals or businesses involved in the design, production, and sale of jewelry.

Average cost method

An inventory costing method where all costs of inventory are averaged out to determine the cost of goods sold and the ending inventory value.

Cost of merchandise sold

The entire expense directly tied to the production and sale of products in inventory that were sold during a specific period.

Year amount

An expression referring to the total amount or figures calculated over a year's period.