Anthony Burkhardt's Ch22-PowerPoint(first half)

Method mixed costs 3 steps in using the highlow

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Unformatted text preview: nately with changes in activity level Chapter 22-4 Illustration 22-5 Mixed Costs: 3 Steps in Using the High–Low Method Mixed Costs: 3 Steps in Using the High–Low Method Mixed STEP 1: De te rm in e variable cost per unit us in g th e fo llo wing fo rm ula : STEP 2: De te rm in e th e fixed cost b y s ub tra c ting th e to ta l va ria b le c o s t a t either the high or the low activity level from the total cost at that level STEP 3: Us e th is b re a kd o wn o f total fixed cost a n d th e va ria b le cost per unit to e s tim a te to ta l c o s t a t a n y g ive n a c tivity le ve l. Chapter 22-5 Cost-Volume-Profit Analysis Cost-Volume-Profit Analysis Study...
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