Question

In: Accounting

In 200 words or more, What is meant by mixed costs in Accounting and what are...

In 200 words or more, What is meant by mixed costs in Accounting and what are some examples. Original work please.

Solutions

Expert Solution

There are three types of costs in accounting i.e. variable, fixed and mixed. The mixed costs has components of both variable and fixed costs. The formula for a mixed cost is y=a+bx, where a is the fixed cost and b the variable cost per unit.

It is diffiicult to analyse the way mixed costs behave. For this purpose, there are two methods which can be used - the graph method and the high low method. The graph method is used by plotting the costs at various levels to identify the area which represents fixed cost. The high low method uses the highest production point and the lowest production point to analyze the variable and fixed component.

The examples of mixed costs are given below:

The rental for a business site which has a fixed cost of $10000 plus $100 for any additional tenant is an example of a mixed cost.

For example, the production cost for 10000 units is $100000. For every additonal unit over 10000 units , there is an additional charge of $100.It is a mixed cost.


Related Solutions

In 200 words or more, Explain variable, fixed, and mixed costs and the relevant range. Original...
In 200 words or more, Explain variable, fixed, and mixed costs and the relevant range. Original work please
In 200 words or more, What are the main differences in the role of financial accounting...
In 200 words or more, What are the main differences in the role of financial accounting and managerial accounting? Original work please
In 200 words or more, explain what Earnings Management is in Accounting and how it affects...
In 200 words or more, explain what Earnings Management is in Accounting and how it affects a business.
In 200 words or more, What is standard cost accounting, how does it work and what...
In 200 words or more, What is standard cost accounting, how does it work and what are some examples? Original work please
In 200 words or more What are the elements of a business plan? What is the...
In 200 words or more What are the elements of a business plan? What is the process of building a business plan?
In 200 words or more, Describe the classes of manufacturing costs and the differences between product...
In 200 words or more, Describe the classes of manufacturing costs and the differences between product and period costs. Original Work Please
What is meant by mixed melting point determination ?
What is meant by mixed melting point determination ?
Hello, please 200 words at least, thank you: Q: What is meant by the "cost of...
Hello, please 200 words at least, thank you: Q: What is meant by the "cost of capital", as the term pertains to common shareholders' equity? We can easily determine the cost of debt, which is the stated rate multiplied by one minus the marginal tax rate; and the cost of preferred stock is usually based upon the annual dividend plus the flotation cost per share for a new issue; but why do we also calculate a "cost" for issuing common...
Please write a short report (not more than 200 words) concerning the allocation of indirect costs...
Please write a short report (not more than 200 words) concerning the allocation of indirect costs using plantwide, department, and ABC rates. The report should focus on the following: The nature of eachadvantages and disadvantages. The question is on the site. I want an answer that differs from the previous question Thank you ِ Abdul-rahim Taysir
In 200 words or more: What does valuation mean in reference to a firm? What is...
In 200 words or more: What does valuation mean in reference to a firm? What is the process to determine valuation of a firm--start up, small, larger firm? Is there a difference?
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT