AC202 Week 6 Discussion

AC202 Week 6 Discussion - When competition drives selling...

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Week 6 Discussion 13. How is a scatter diagram used to identify and measure the behavior of a company's costs? A scatter diagram may be used to identify and measure the behavior of a company's costs by showing how changes in selling prices, variable costs, and fixed costs impact break-even. "When selling prices can be increased without impacting costs, break-even decreases.
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Unformatted text preview: When competition drives selling prices down, and the company cannot reduce costs, break-even increases. Increases in either variable or fixed costs, if they cannot be passed on to customers via higher selling prices, will increase break-even. If costs can be reduced and selling prices held constant, the break-even decreases." (Wild, Shaw, Chiapetta Pg. 912)...
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This note was uploaded on 11/11/2011 for the course AC 202 taught by Professor Nancyeverett during the Spring '09 term at Park.

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