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In the previous post about mixed cost, we stated that a mixed cost is just the sum of the variable and fixed components. This is fairly easy to deal with when we are dealing with an external cost where

Learn MoreFixed costs can be a tricky business. They might seem simple but if you think too much, you might get tripped up. Just like with variable cost, fixed costs are named because of how the cost behaves in

Learn MoreWhen thinking about cost behavior, think about how the cost behaves in total. A variable cost is a cost that varies in total. The cost increases or decreases based on a related activity. The formula for

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