English

A variable cost, also known as a mixed cost or a semi-fixed cost, it is an expense that contains both fixed and variable components.

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Question

A variable cost, also known as a mixed cost or a semi-fixed cost, it is an expense that contains both fixed and variable components.

Options

  • True

  • False

MCQ
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Solution

False

Explanation:

Variable cost changes directly with output and has no fixed portion. A mixed (semi-variable/semi-fixed) cost contains both fixed and variable elements (e.g., telephone rental fixed, call charges variable).

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Chapter 8: Fundamental Concepts of Cost - EXERCISES [Page 151]

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Goyal Brothers Prakashan Commercial Studies [English] Class 10 ICSE
Chapter 8 Fundamental Concepts of Cost
EXERCISES | Q 39. | Page 151
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