Scattergraph to Separate Mixed Costs into Variable and Fixed Components
Equity Accounts on the Chart of Accounts
How to Choose the Right Bank for Your Business

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
How to Dispose of Receivables
Types of Interest
Simplifying Journaling with Computerized Accounting
Bookkeeping: Posting Journal Information to the Appropriate Accounts
QuickBooks Pro Software for Bookkeepers