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Unformatted text preview: activity level is. A Mixed cost is a cost that contains both a variable and a fixed element. It can change in total but not in proportionately with changes in the activity levels. Question 3 A CVP income statement is a Cost-Volume-Profit Income Statement. This is the study of the effects of changes in the cost and volume of a companys profits. It is important to management because it has setting selling prices, determining products mix, and maximizing use of production facilities. There are five basic components that CVP analysis considers with the interrelationships among the components. Volume or level of activity, units selling prices, variable cost per unit, total fixed cost and sales mix are the five basic components....
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This note was uploaded on 12/20/2011 for the course ACC 220 taught by Professor - during the Spring '10 term at University of Phoenix.
- Spring '10