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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › fixed cost in multi product environment
In multi product environment,while calculating break even point, for product mix and individual products, which fixed costs should we use :
a: product specific
b: other general fixed costs
c: both
I mean are product specific fixed costs treated as variable costs?
If you are talking about CVP analysis (and drawing the PV chart) then you should use total fixed costs.
