mixed expenses definition

Used in conjunction with cost or expense behavior. Mixed expenses consist of a constant or fixed portion and a variable portion. For example, sales salaries would be a mixed expense if each sales person's compensation is $2,000 per month plus 3% of the sales generated by the employee. Automobile expense is a mixed expense in relationship to miles driven. The automobile insurance, licensing, and parking are fixed expenses in that they do not vary with the miles driven. Gasoline and maintenance are considered variable because they will vary with miles driven.