Question

Estimating the fixed and variable components of a mixed cost using the_______approach involves a detailed analysis of what cost behavior should be.

Answer 1

Estimating the fixed and variable components of a mixed cost involves a detailed analysis of cost behavior through calculating total cost, average variable cost, average total cost, and marginal cost.

Step-by-step explanation:

Estimating the fixed and variable components of a mixed cost using the detailed analysis approach involves a thorough examination of what cost behavior should be. In this approach, the cost structure of the firm is determined by calculating total cost, average variable cost, average total cost, and marginal cost. These calculations provide insights into the fixed and variable components of the mixed cost.