Purchase Solution

Mixed and Varied Costs

Not what you're looking for?

Ask Custom Question

Wysocki Company pays its sales force a fixed salary plus a 5% commission on all sales. Explain why sales force costs would be considered a mixed cost. Explain how mixed costs are related to both fixed and variable costs.

Purchase this Solution

Solution Summary

This solution explains why a sales force cost paid as a salary plus commission would be considered a mixed cost. It then explains how mixed costs are related to both fixed and variable costs.

Solution Preview

A fixed cost is a cost which does not vary over the relevant range. (The relevant range is the range over which certain cost relationships exist in a predictable fashion.) A variable cost is one which varies according to a level of activity over the relevant range. This "activity" may be sales, machine ...

Purchase this Solution


Free BrainMass Quizzes
Cost Concepts: Analyzing Costs in Managerial Accounting

This quiz gives students the opportunity to assess their knowledge of cost concepts used in managerial accounting such as opportunity costs, marginal costs, relevant costs and the benefits and relationships that derive from them.

Production and cost theory

Understanding production and cost phenomena will permit firms to make wise decisions concerning output volume.

Marketing Management Philosophies Quiz

A test on how well a student understands the basic assumptions of marketers on buyers that will form a basis of their marketing strategies.

Organizational Leadership Quiz

This quiz prepares a person to do well when it comes to studying organizational leadership in their studies.

Social Media: Pinterest

This quiz introduces basic concepts of Pinterest social media