Applying Mixed Cost Analysis Methods in Manufacturing Enterprises

Costs play an important role in corporate governance. Costs have many definitions and ways to classify costs because they depend on the costs incurred and the purpose of using the costs in corporate governance. In particular, the way of classifying costs according to the level of activity is that costs are divided into variable costs, fixed costs and mixed costs. Fixed costs are costs that do not change with the level of activity of the business. Variable costs are costs whose total changes when the level of activity changes, such as changing the number of units of product produced, the number of products consumed, or the number of hours worked, the number of machine operating hours. Mixed costs are costs that include both variable and fixed cost elements. This article presents mixed cost separation methods including maximum-minimum method, least squares method, multiple regression method, scatter plot method... At the same time, the article applies the methods mixed cost separation method in manufacturing enterprises serves to build norms, make estimates and manage costs in manufacturing enterprises.