Asked by Joshua Brinson on May 14, 2024
Verified
Given the following cost data, what type of cost is shown? 
A) mixed cost
B) variable cost
C) fixed cost
D) period cost
Mixed Cost
Mixed Cost refers to expenses that have both fixed and variable components, changing in total with activity level but also containing a static portion that remains constant.
Variable Cost
Costs that change in proportion to the level of goods or services a company produces.
Fixed Cost
Costs that do not vary with the level of production or sales, remaining constant even when the volume of output changes.
- Comprehend the principles of fixed, variable, and mixed expenses.
Verified Answer
LH
Lidia HurezanMay 15, 2024
Final Answer :
C
Explanation :
The cost data provided is a single amount, which remains constant regardless of production levels or sales revenue. This indicates that it is a fixed cost, as opposed to a variable cost which would increase or decrease with production levels, or a mixed cost which would have both fixed and variable components. The cost data does not provide enough information to determine if it is a period cost or a product cost.
Learning Objectives
- Comprehend the principles of fixed, variable, and mixed expenses.