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Mahoney
Biology
23 October, 17:59
Compare the three categories of
behavior costs.
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Kristian Hays
23 October, 18:18
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here are four basic cost behavior patterns: fixed, variable, mixed (semivariable), and step which graphically would appear as below. The relevant range is the range of production or sales volume over which the assumptions about cost behavior are valid. Often, we describe them as time-related costs.
Explanation:
The general types of cost behavior fall into three categories. First is variable costs, which vary directly with changes in business activity. For example, there is a specific direct materials cost associated with each product sold. Second is fixed costs, which do not change in response to business activity levels.
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