CheckPoint Cost, Volume, and Profit Questions

CheckPoint Cost, Volume, and Profit Questions - CheckPoint:...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
CheckPoint: Cost, Volume, and Profit Questions Resources: Chapter 6 of Essentials of Accounting Due Date: Day 3 [ Individual ] forum Post not the Self-Study Questions ) on pp. 284-285 of the text. 7. How should mixed costs be classified in CVP analysis? What approach is used to effect the appropriate classification? According to the text it states that ‘mixed costs must be classified into their fixed and variable elements .’ This is for the CVP analysis. But for the appropriate classification it would fall under ‘ The high-low method uses the total costs incurred at the high and low levels of activity,’ this is according to the text as well. Here is the equation from the text to determine the variable: 1. Determine variable cost per unit from the following formula. Change in Total Costs ÷ High minus Low Activity Level=Variable Cost per Unit 2. Determine the fixed cost by subtracting the total variable cost at either
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 2

CheckPoint Cost, Volume, and Profit Questions - CheckPoint:...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online