A Cost That Contains Both Fixed and Variable Elements Is

question 132

Multiple Choice

A cost that contains both fixed and variable elements is referred to as a:

• A) mixed cost.
• B) hybrid cost.
• C) relevant cost.
• D) nonvariable cost.

---

Definitions:

Non-Normal Cash Flows

Cash flow patterns that don't follow a regular, predictable pattern, often encountered in investment analysis.

MIRR

Modified Internal Rate of Return, a financial metric that accounts for the cost of capital and assumes positive cash flows are reinvested at a firm's reinvestment rate.

NPV

Net Present Value, a method used in capital budgeting to evaluate the profitability of an investment, calculating the present value of cash inflow minus the present value of cash outflow.

IRR

Internal Rate of Return; a financial metric used to evaluate the profitability of potential investments based on cash flows.