Mixed Cost

The term mixed costs often refers to the performance of costs and expenses. Mixed costs consists of fixed components and variable components. The annual cost of operating an automobile is a mixed cost. Some of the expenses are fixed, because they do not change in total as the number of annual miles change. Think insurance, parking fees, and some depreciation.

Mixed Cost

Mixed cost is a cost that contains both the fixed cost and a variable cost component. It is important to understand the mixed cost so that one can find out the degree of presence of both the fixed and the variable cost factor in