- 1 Marks
Question
Which of the following is another name for mixed cost?
A. Double cost
B. Semi-Variable cost
C. Fluctuating cost
D. High and Low cost
E. Triple cost
Answer
B. Semi-Variable cost
Explanation:
A mixed cost (or semi-variable cost) is a cost composed of both fixed and variable components. As such, it has characteristics of both fixed costs, which do not change with activity levels, and variable costs, which do change with activity levels. Therefore, the correct answer is B. Semi-Variable cost because it accurately represents costs that have both fixed and variable elements.
- Tags: Fluctuating Costs, Mixed Costs, Semi-Variable Costs
- Level: Level 1
- Topic: Cost Classifications
- Series: MAY 2023
- Uploader: Theophilus