A Cost That Has Both a Fixed and Variable Component

question 22

Multiple Choice

A cost that has both a fixed and variable component is known as a:

• A) step-fixed cost.
• B) step-variable cost.
• C) semivariable cost.
• D) curvilinear cost.
• E) discretionary cost.

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Definitions:

Retail Sales Tax

A tax on the sale of goods and services that is usually calculated as a percentage of the purchase price and collected by the retailer.

Payout Rates

The percentage of earnings or profits that a company distributes to its shareholders as dividends.

State Lotteries

Government-run lotteries that operate as a form of gambling, providing revenue for public projects and services.

Casinos

Facilities that accommodate and house various types of gambling activities and entertainments.