Joel Schmitz CPA

What Do They Mean By Mixed Costs?
Costs which have both fixed and variable components when measuring behavior with changing volume of production or sales. An example of a mixed cost might be utility costs for which there are fixed monthly hookup fees plus costs that vary with the volume of production. Because basic CVP analysis requires that all company costs be distinguished as either fixed or variable, any mixed costs of a company must be analyzed and broken apart into their fixed and variable components. Two common methods used to accomplish this are the high-low and scattergraph methods.
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