Telephone costs are USUALLY classified as:Group of answer choicesvariable costs.fixed costs.irrelevant costs.mixed costs.

To determine how telephone costs are classified, we need to analyze the nature of these costs in relation to business operations.

1. Understanding Cost Classifications:

   • Variable Costs: These costs vary with the level of production or service. For example, the more calls a business makes, the higher the telephone costs might be.
   • Fixed Costs: These costs remain constant regardless of the level of production or service. A committed telephone line cost could be considered fixed, as it does not change with usage.
   • Irrelevant Costs: These are costs that should not influence business decisions. They are typically sunk costs and not applicable here.
   • Mixed Costs: These costs contain both fixed and variable components. A telephone bill may have a base charge (fixed) alongside additional charges based on usage (variable).

2. Analysis of Telephone Costs:

   • Primary Nature: Telephone costs usually have a fixed base charge plus variable costs based on usage.
   • Implication for Businesses: Businesses often have both a consistent line rental (fixed) and costs that fluctuate with usage, making them mixed costs.

Final Answer

Telephone costs are usually classified as mixed costs.