Dictionary of Accounting Terms: cost behavior analysis
cost behavior analysis
separating mixed costinto their variable and fixed elements. Mixed costs are common to a wide range of firms. Examples of mixed costs include sales compensation, repairs and maintenance, and factory overhead in general. Mixed costs must be separated into the variable and fixed elements in order to be included in a variety of business planning analyses such as Cost-Volume-Profit (CVP) Analysis. There are several methods available for this purpose including the least-squares method.
