Difference between Variable, Fixed, and Mixed Costs with illustrations

Controller, Judy Koch, in a recent speech said, "I rarely see a real variable cost or a truly fixed cost." What did she mean? Include in your response an explanation of the difference in behavior of variable and fixed cost

I. Introduction

As the corporate business financial analyst for SAC, it is essential that I possess a complete comprehension of the various kinds of costs a corporation carries. The three various kinds of costs that are essential for me to comprehend are variable, fixed, and mixed costs. To ensure that I comprehend all three of these costs, I will explain each of them, give examples, and review SAC's journal entries for 2006 listing the various costs.

II. Cost Analysis

a. Variable Costs

The first...