Hector Rios MGM5500 Discussion Board 2.docx - Hector R Rios Delgado MGM 5500 Managerial Accounting Discussion Board 2 1 What are the four methods

Hector Rios MGM5500 Discussion Board 2.docx - Hector R Rios...

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Hector R. Rios Delgado MGM 5500 – Managerial Accounting Discussion Board 2 1. What are the four methods commonly used to identify the fixed and variable elements of a mixed cost? The four methods commonly used to identify the fixed and variable elements of a mixed cost are: 1. Engineering Approach is a method of separating mixed cost into its fixed and variable components using experts that are familiar with the technical aspects of the activity and associated cost. 2. Scatter Graphing is a method of separating mixed cost into its fixed and variable components by plotting historical activity and cost data to determine how the cost relates to various levels of activity. 3. The High-Low Method is a method of separating a mixed cost into its fixed and variable components using the mathematical differences between the highest and lowest levels of activity and cost. 4. Regression Analysis is a method of separating a mixed cost into its fixed and variable components using fairly complex mathematical formulas.

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