Question: Why is it important to analyze mixed costs? Managers need to know how much of a cost is variable and how much is fixed. Within
Why is it important to analyze mixed costs?
Managers need to know how much of a cost is variable and how much is fixed.
Within the relevant range of activity, variable costs do not change.
To make decisions, managers need to know how costs change.
Within the relevant range of activity, fixed costs change as activity changes.
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
