You have been studying 'fixed' costs. You learned that a number of 'fixed' costs are actually mixed costs (variable and fixed). Write a two 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.
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).
Objective: Explain how to arrive at the appropriate derivation of a cost.
Use effective communication techniques.
The answer contains the detailed explanation of fixed cost,variable cost,mixed cost and the eight techniques of separation of mixed cost into variable and fixed .