Mixed Cost or Semi-variable Cost: Learning Objective of this Article: Define and explain mixed or semi-variable cost. Give examples of mixed costs. Analyze mixed cost using high-low point method. Definition and explanation of mixed or semi variable cost: A mixed cost is one that
Limitations of High Point Method
Limitations of High Point Method means the high-low method is not preferred because it can give way an incorrect understanding of the data if there are changes in variable or fixed cost rates over time, if a tiered pricing system is employed.