{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Anthony Burkhardt's Ch22-PowerPoint(first half)

Chapter 22 1 how costs behave on a total and per unit

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: classes taught (by a Dance studio) Choose an activity that causes chnages in the behavior of costs. Chapter 22-1 HOW COSTS BEHAVE ON A TOTAL AND PER-UNIT BASIS IN TOTAL Variable Changes Changes proportionately Cost PER UNIT Remains the same [Illustration 22-1, (b) graph] with changes in the activity level. the [Illustration 22-1, (a) graph] Fixed Cost Remains the same Changes inversely [Illustration 22-2, (a) graph] with changes in the activity level [Illustration 22-2, (b) graph] (More of a linear relationship) Chapter 22-2 Relevant Range Relevant Range Relevant De fine d a s th e ra ng e o f a c tivity o ve r wh ic h a c o m p a n y De expects to operate during a year Within this range, a straight­line relationship usually exists for both Variable and Fixed costs Chapter 22-3 Mixed Costs Mixed Costs Mixed Costs that have both a va ria b le c o s t both e le m e n t a n d a fixe d c o s t e le m e nt S o m e tim e s c a lle d semi variable cost l Change in total but not proportio...
View Full Document

{[ snackBarMessage ]}

Ask a homework question - tutors are online