{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Chapter 3 Class Notes

# Chapter 3 Class Notes - 500 Units 3,500 Units Variable Rate...

This preview shows pages 1–3. Sign up to view the full content.

Chapter 3 Class Notes – day 2 1. Why we need to understand how costs behave? a. Explain Past Results b. Predict / Estimate Future Results 2. Graphic Representation : Y=MX+B a. Fixed Cost b. Variable Cost c.Mixed Cost d. Step Cost and Relevant Range

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

View Full Document
3. Estimating cost function of a mixed cost a. High – Low Method
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: 500 Units 3,500 Units Variable Rate Cost per Unit \$5.00 \$5.00 x Units for January 500 3,500 = Total Variable Cost @ 500 Units \$2,500 \$2,500 \$17,500 \$17,500 Fixed Cost Per Month 10,000 10,000 Total Cost for January using Variable Rate + Fixed Cost \$12,500 \$27,500...
View Full Document

{[ snackBarMessage ]}