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A company's telephone bill consisting of a $200 monthly base amount, plus long distance charges, would be classified as a Mixed Cost?

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Question added by Mohamed Hakeem Meerashahib , Branch Manager , Sri Lanka State Trading (General) Corporation
Date Posted: 2016/03/05
Shameer Nazir Madari
by Shameer Nazir Madari , Assistant Finance Manager , METAL AND RECYCLING COMPANY K.S.C. (PUBLIC)

The answer is a. True

Because Mixed cost is consist of a fixed component and a variable component, in this example 

Fixed component = $ 200 monthly base amount and

Variable component = Long distance charges 

 

 

Fathi Matbaq
by Fathi Matbaq , Senior Purchasing Officer , Alghanim Industries

True, because it includes base/fixed amount and variable cost.

abdelaziz allam
by abdelaziz allam , محاسب اول , شركة كامبردج مصر للاستثمار التعليمي ش.م.م

True...................it amixed cost