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Unformatted text preview: for budgets. Hi Linda, Good managers must not only be able to understand the conceptual underpinnings of cost behavior, but they must also be able to apply those concepts to real world data that do not always behave in the expected manner. Cost data are impacted by complex interactions. Consider for instance the costs of operating a vehicle. Conceptually, fuel usage is a variable cost that is driven by miles. But, the efficiency of fuel usage can fluctuate based on highway miles versus city miles. Nevertheless, management must understand cost behavior, and this sometimes takes a bit of forensic accounting work. Jack...
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- Fall '10