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Cost Estimation Techniques

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You have been studying 'fixed' costs. You learned that a number of 'fixed' costs are actually mixed costs (variable and fixed). Write a three paragraph memo to your manager explaining some of the cost estimation techniques that can help determine the fixed and variable portion of each mixed cost (such as utility costs and maintenance costs). Your response should not be limited to just the definitions of fixed, variable, and mixed costs.

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You have been studying 'fixed' costs. You learned that a number of 'fixed' costs are actually mixed costs (variable and fixed). Write a 2 paragraph memo to your manager to explain various cost estimation techniques that can help determine the fixed and variable portion of each mixed cost (such as utility costs, maintenance costs) and why it is relevant to more accurately understand the types of costs.
In your own words, please post a response to the Discussion Board and comment on at least two other postings. You will be graded on the quality of your postings. Each comment must be at least 100 words in length. Use the 2x2 matrix to comment (i.e., two things you liked about the posting and two things the student could have included to improve the posting, including errors or excluding erroneous information).
Mixed cost
According to the investopedia "Mixed cost is a cost that contains both variable and fixed cost elements. "For example, Salaries can include the basic salary which is a fixed cost and the incentives based ...

Solution Summary

This solution provides a discussion regarding cost estimation techniques.

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