PPT_for_Chapter_3_without_in-class_assignment

PPT_for_Chapter_3_without_in-class_assignment - ACC 200...

Info iconThis preview shows pages 1–6. Sign up to view the full content.

View Full Document Right Arrow Icon
ACC 200 Fall 2010 Chapter 3 Roby B. Sawyers, CPA, Ph.D. College of Management
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
2 Primary Topics Cost Behavior Fixed, variable and mixed costs Analyzing mixed costs using the high/low method and regression analysis Predicting costs using the cost equation The impact of taxes on revenues, costs and income
Background image of page 2
3 Cost Behavior How do costs behave when production or other levels of activity change? If you know how a cost behaves, you can predict what costs will be in the future Do costs always go up when we make more products and go down when we make fewer products?
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Fixed Costs Fixed Costs Remain the same in total but vary per unit when production volume changes Examples Rent, Depreciation, Salary of a Plant Manager, Insurance, Property Taxes Volume $ Total Fixed Costs Volume $ Fixed Cost Per Unit 10 25 50 75 4 25 50 2 75 1.33
Background image of page 4
Variable Costs Variable Costs Vary in direct proportion to changes in production volume but are fixed when expressed as per-unit amounts
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 6
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 01/11/2011 for the course ACC 200 taught by Professor Buckless during the Winter '08 term at N.C. State.

Page1 / 14

PPT_for_Chapter_3_without_in-class_assignment - ACC 200...

This preview shows document pages 1 - 6. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online