Analyze Accounts to Separate Mixed Costs into Variable and Fixed Components
Following Outgoing Cash with the Cash Disbursements Journal
What Is Depreciation?

Scattergraph to Separate Mixed Costs into Variable and Fixed Components

Step 3 of 3
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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.

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