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Managerial Accounting: The Corners...
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Managerial Accounting: The Corners...
Why do mixed costs pose a problem when it comes to classifying costs into fixed and variable categories?
Explain the problems associated with mixed cost while classifying cost into fixed and variable category.
Mixed Cost:
The total cost which includes partially fixed and partially variable cost in nature is known as mixed cost. In other words, mixed cost is the combination of more than one type of cost.
The problems faced by the managers while separating mixed cost into fixed and variable cost category are as follows:
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