11 A MIXED COST CAN BE EXPRESSED IN FOR-FUNCTIONAL AREA, FIXED AND V...

5-11 A mixed cost can be expressed in for-

functional area, fixed and variable costs are in-

mula form as Y = a + bX. In cost analysis, the

termingled.

“a” term represents the fixed cost element, and

the “b” term represents the variable cost ele-

ment per unit of activity.