# Definition of __mix__

## mix

any possible combination of material or labor inputs

# Related Terms:

See sales **mix**.

The **mix** of product/services offered by the business, each of which may be aimed at different customers, with each product/service having different prices and costs.

(actual **mix** X actual hours X standard rate) - (standard **mix** X actual hours X standard rate);

it presents the financial effect associated with changing the

proportionate amount of higher or lower paid workers in production

(actual **mix** X actual quantity X standard price) - (standard **mix** X actual quantity X standardprice);

it computes the monetary effect of substituting a nonstandard **mix** of material

a cost that has both a variable and a fixed component;

it varies with changes in activity, but not proportionately

the combination of capital sources at which the lowest weighted average cost of capital is achieved

the relative combination of quantities of sales of the various products that make up the total sales of a company

The variance between the budgeted and actual **mix**es of

direct materials costs, both using the actual total quantity used. This variance isolates

the unit cost of each item, excluding all other variables.

A list of the ingredients required for a blending operation.

The weighting of assets in an investment portfolio among different asset classes (e.g. shares, bonds, property, cash, overseas investments.

The makeup of the liabilities and stockholders' equity side of the balance sheet, especially

the ratio of debt to equity and the **mix**ture of short and long maturities.

The debt and/or equity **mix** that fund a firm's assets.

An asset allocation strategy in which the asset **mix** is mechanistically shifted in

response to -changing market conditions, as in a portfolio insurance strategy, for example.

A long-term asset allocation method, in which the investor seeks to assess an

appropriate long-term "normal" asset **mix** that represents an ideal blend of controlled risk and enhanced

return.

The property that portfolio choice can be separated into two independent tasks: 1)

determination of the optimal risky portfolio, which is a purely technical problem, and 2) the personal choice

of the best **mix** of the risky portfolio and the risk-free asset.

## Tactical Asset Allocation (TAA)

An asset allocation strategy that allows active departures from the normal

asset **mix** based upon rigorous objective measures of value. Often called active management. It involves

forecasting asset returns, volatilities and correlations. The forecasted variables may be functions of

fundamental variables, economic variables or even technical variables.

## Cost of capital

The costs incurred by an organization to fund all its investments, comprising the risk-adjusted

cost of equity and debt weighted by the **mix** of equity and debt.

## capital structure, or capitalization

Terms that refer to the combination of

capital sources that a business has tapped for investing in its assets—in

particular, the **mix** of its interest-bearing debt and its owners’ equity. In a

more sweeping sense, the terms also include appendages and other features

of the basic debt and equity instruments of a business. Such things

as stock options, stock warrants, and convertible features of preferred

stock and notes payable are included in the more inclusive sense of the

terms, as well as any debt-based and equity-based financial derivatives

issued by the business.

## high-low method

a technique used to determine the fixed

and variable portions of a **mix**ed cost; it uses only the highest

and lowest levels of activity within the relevant range

## labor yield variance

(standard **mix** X actual hours X standard rate) - (standard **mix** X standard hours X standard rate);

it shows the monetary impact of using more or fewer total hours than the standard allowed

## least squares regression analysis

a statistical technique that investigates the association between dependent and independent variables; it determines the line of "best fit" for a set of observations by minimizing the sum of the squares

of the vertical deviations between actual points and the

regression line; it can be used to determine the fixed and

variable portions of a **mix**ed cost

## material yield variance

(standard **mix** X actual quantity X standard price) - (standard **mix** X standard quantity X standard price);

it computes the difference between the

actual total quantity of input and the standard total quantity

allowed based on output and uses standard **mix** and

standard prices to determine variance

## scattergraph

a graph that plots all known activity observations

and the associated costs; it is used to separate **mix**ed

costs into their variable and fixed components and to examine

patterns reflected by the plotted observations

## capital structure

Firm’s **mix** of long-term financing.

## Capital Structure

The **mix** of the various types of debt and equity capital maintained by a firm. The more debt capital a firm has in its capital structure, the more highly leveraged the firm is considered to be.

**Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit.**