Which of the following costs is a mixed cost?

A) salary of a factory supervisor
B) electricity costs of $3 per kilowatt-hour
C) rental costs of $10,000 per month plus $0.30 per machine hour of use
D) straight-line depreciation on factory equipment

Question

Keyandra Andrus · Accepted Answer

Final Answer : C, Explanation :  Rental costs are fixed costs because they remain constant regardless of the level of activity. On the other hand, the additional cost per machine hour is a variable cost because it varies with the level of activity. Therefore, the rental cost in this scenario is a mixed cost.

Which of the following costs is a mixed cost?

A) salary of a factory supervisor
B) electricity costs of $3 per kilowatt-hour
C) rental costs of $10,000 per month plus $0.30 per machine hour of use
D) straight-line depreciation on factory equipment

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Learning Objectives

Learning Objectives

Related questions

Which of the following costs is a mixed cost?A) salary of a factory supervisorB) electricity costs of $3 per kilowatt-hourC) rental costs of $10,000 per month plus $0.30 per machine hour of useD) straight-line depreciation on factory equipment

Definitions

Learning Objectives

Learning Objectives

Related questions

Which of the following costs is a mixed cost?

A) salary of a factory supervisor
B) electricity costs of $3 per kilowatt-hour
C) rental costs of $10,000 per month plus $0.30 per machine hour of use
D) straight-line depreciation on factory equipment