A Cost That Has Both a Fixed and Variable Component

question 58

Multiple Choice

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

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

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Definitions:

Direct Method

A way of presenting the cash flow statement where major classes of gross cash receipts and payments are disclosed, offering a more straightforward view of cash flow from operating activities.

Cafeteria Department Costs

Expenses associated with operating a company's cafeteria, including food, labor, and overhead costs.

Sequential Method

A procedure in cost accounting for allocating service department costs to producing departments in a specific order.

Direct Method

Definition: A cash flow statement preparation approach that presents major classes of gross cash receipts and payments.