Scattergraph to Separate Mixed Costs into Variable and Fixed Components
Relevant versus Irrelevant Costs
How to Defer a Payment When Valuing PP&E

Analyze Accounts to Separate Mixed Costs into Variable and Fixed Components

Use your knowledge of operations and your common sense to classify each account as variable or fixed.

Variable costs change with the cost driver, but fixed costs don’t.

If appropriate, you can classify some accounts as mixed and then assign percentages of each that are variable and fixed. For example, an account may be 50 percent variable and 50 percent fixed.

  • Add a Comment
  • Print
  • Share

Recommends

Promoted Stories From Around The Web

COMMENTS »
blog comments powered by Disqus
QuickBooks Pro Software for Bookkeepers
Types of Interest
Set-Up and Follow-Up Transactions for Revenue and Expenses
How to Calculate Unemployment Tax (FUTA)
Dealing with Payroll Enquiries as a Bookkeeper in Australia