For purposes of CVP analysis mixed costs must be classified into their fixed and variable elements.

Name: For purposes of CVP analysis mixed costs must be classified into their fixed and variable elements.
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Quizplus · Accepted Answer

This statement is true. In order to accurately perform CVP analysis, mixed costs must be separated into their fixed and variable components in order to determine the contribution margin and break-even point.

For Purposes of CVP Analysis Mixed Costs Must Be Classified