The Equation That Best Describes a Mixed Cost Is

question 4

Multiple Choice

The equation that best describes a mixed cost is:

• A)Y = f - vX
• B)Y = f + vX
• C)Y = f + v + X
• D)Y = fv + X
• E)None of the answer choices is correct.

---

Definitions:

Payables Period

The average amount of time it takes for a business to pay off its owed liabilities to suppliers or creditors.

Cash Cycle

It describes the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.

Inventory Period

The amount of time it takes for a company to sell through its current stock of inventory.

Accounts Receivable Period

The average number of days that it takes a company to collect payments after a sale has been made, a critical component of managing cash flow.