Analyze Accounts to Separate Mixed Costs into Variable and Fixed Components
Maintaining Proper Paperwork for a Business’s Cash Transactions
Current Ratio: A Valuable Tool for Bookkeepers

Scattergraph to Separate Mixed Costs into Variable and Fixed Components

Step 3 of 3
Next Slideshow
Next Slideshow

On this graph, plot each point from the table.

Plot each data point on your graph. You can do so manually by using graph paper or electronically by using Excel’s Chart Wizard:

Enter the data from Step 1 into the Excel spreadsheet.

Select only the two columns of data (“Production” and “Total Cost”).

In the “Insert” menu, click on “Scatter” and then “Scatter with only Markers.”

Label the axes appropriately.

If you’re trying to predict total costs for a future month, select the anticipated activity level for that month along the x-axis. Then use data points from previous months to estimate the total cost.

blog comments powered by Disqus
Tax-Deductible Expenses for Micro-Entrepreneurs
Bookkeeping Checklist
Basic Bookkeeping for Your Small Business
How to Choose the Right Bank for Your Business
Accounting: Examining Both Sides of Business Transactions
Advertisement

Inside Dummies.com