A cost that changes with the number of units produced, but that can never be a zero, is what kind of cost ?
- Mixed cost
- Period cost
- Variable cost
- Product cost
Explanation
If the cost can never be zero, it has a fixed component. However, since it changes with the number of units produced, it also has a variable component. This is a mixed cost.
Related MCQs
MCQs will be added soon
Leave a Reply
Your email address will not be published. Required fields are marked *
