Cost Volume Profit Analysis



Cost Volume Profit Analysis

Variable, fixed and mixed Cost

Mixed cost is also known as semi variable cost and possesses characteristics of both fixed and variable because it is made up of both fixed and variable cost. The mixed cost can be explained by assessing the telephone bills expense as telephone bill is comprised of both fixed cost i.e. the line rent which remains fixed throughout the consumption of telephone and variable cost i.e. the bill or expense associated to making number of calls to another telephone or mobile network.

The fixed cost is referred to the cost that ...