Question

Consider the current costs of things that are currently in your life (whether you pay the cost or not).

Name at least one of each of these and describe how it fits the category of costs.

1. variable cost (what is the activity this is based on)

2. fixed cost

3. mixed cost (describe how it is mixed)

Answer 1

In my Daily life I incurred different types of costs and I will classify as Variable, Fixed and Mixed Costs. 1. Variable Costs: a. My Food Expenses , Daily I eat 3 Pizzas (morning, lunch and dinner) these costs around $15 per each This cost is variable because they charge price per pizza, and cost per pizza is fixed at $15 Total cost of pizzas is depends on how many pizzas I eat. So it is variable cost. b. Cost for Vegitables, Fruits etc. 2. Fixed Costs: a. I pay every month $6000 as Rent Expenses home where I am residing. b. I pay news paper /magazines bill every month $300 which is fixed cost for me. 3. Mixed Costs: a. I had internet for this service provider charges up to 300 GB a Fixed amount of $200 and $1 Per GB for usage exceeding limit of 300 GB.