[Solved] Which of the following costs is a mixed cost?  

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Raj Maurya
(@rajmaurya)
Member Admin
Joined: 2 years ago
Posts: 8
15/02/2019 9:03 am  

Which of the following costs is a mixed cost?


A) a. Salary of a factory supervisor

B) b. Electricity costs of $2 per kilowatt-hour

C) c. Rental costs of $5,000 per month plus $.30 per machine hour of use

D) d. Straight-line depreciation on factory equipment

Solution

The answer is C because it is a fixed cost (Monthly) and a variable cost (hours of use).


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