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.