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2017-05-19
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2017-07-27
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2017-11-27
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How do you calculate mixed cost?
y is the total cost. A is the fixed cost per period. B is the variable rate per unit of activity. X is the number of units of activity.
What is a mixed cost give an example of a mixed cost?
A mixed cost contains a fixed base rate and a variable rate that fluctuates with use. For example, the fixed portion of your equipment lease is a flat $2,000 charge to produce from zero to 10,000 units. You are charged a variable cost of $1.50 for each unit produced over the 10,000 production ceilings.
What is an example of a mixed cost?
Example of Mixed Costs These include insurance, parking fees, and some depreciation. Some expenses are variable since the total amount will increase when more miles are driven and will decrease when fewer miles are driven. The variable expenses include gas, oil, tires, and some depreciation.
Are commissions a mixed cost?
What Does Mix Cost Mean? Wage costs for employees who are paid a monthly salary plus commissions are a good example of mixed costs. They usually receive a small base salary and commissions based on how many sales they make during the period. The monthly salary is a fixed cost because it can't be eliminated.
Is maintenance a mixed cost?
Mixed costs contain both fixed and variable elements. The company pays a constant fixed cost and a variable amount on top of it. Examples of mixed costs include: utilities, repairs and maintenance, inspection, fringe benefits, employer's payroll taxes, and salaries that contain a fixed amount plus commissions.
How do you find the total mixed cost?
Total Mixed Cost = Variable Cost + Fixed Cost. Total Mixed Cost = Rate X Activity + Fixed Cost. Y = MX + b. ACI, Inc. is looking to lease a copier. ACI, Inc. is doing budget planning for next fiscal year.
What does mixed cost mean?
A mixed cost is a cost that contains both a fixed cost component and a variable cost component. It is important to understand the mix of these elements of a cost, so that one can predict how costs will change with different levels of activity.
What is a mixed cost example?
Example of Mixed Costs These include insurance, parking fees, and some depreciation. Some expenses are variable since the total amount will increase when more miles are driven and will decrease when fewer miles are driven. The variable expenses include gas, oil, tires, and some depreciation.
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