Chapter 3 Class Notes

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

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

View Full Document Right Arrow Icon
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
Background image of page 1

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

View Full DocumentRight Arrow Icon
3. Estimating cost function of a mixed cost a. High – Low Method
Background image of page 2
Background image of page 3
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

This note was uploaded on 10/20/2011 for the course ACC 222 taught by Professor Brewer during the Spring '08 term at Miami University.

Page1 / 3

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

This preview shows document pages 1 - 3. Sign up to view the full document.

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