ACCA MA · Chapter 3 · Question 3 of 10
A telephone bill consists of a fixed monthly line rental plus a charge for each call made. How would this cost be classified?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) Semi-variable
Explanation
A semi-variable (mixed) cost has a fixed element (line rental) that is paid whatever the activity level, plus a variable element (call charges) that rises with use.
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