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Summary management accounting ch2
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Summary management accounting ch2
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mixed cost:A cost that contains elements of both fixed- and variable cost behaviour
Fixed-rate, on top of which are variable costs. A good example is water. You pay a
base amount, but on top of that fixed amount, you pay for how many litres of water you use.
Sales mix:
The relative proportions or combinations of quantities of products that constitute total sales.
For me, this is unclear.
Contribution margin:
The sales price – the variable cost
Or
Revenue – variable costs
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