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Unformatted text preview: _________________________________________________________________________________________ Exhibit 2-1. TYPES OF COST BEHAVIOR A B $ $
Fixed Costs 0 Volume 0 C Volume D
$ $ Semi-V
ariable Costs 0 0
Volume Volume _________________________________________________________________________________________________________
David W. Young • Management Accounting for Managers • Chapter 2
Page 25 Copyrighted Material. Do not reproduce without written permission.
Fixed costs are independent of the number of units produced. While no cost is fixed if the time period is long
enough, the relevant range for fixed costs (i.e., the span of units over which they remain unchanged), or the time
period within which they are considered) generally is quite large. They can be viewed graphically as shown in
Quadrant A of Exhibit 2-1.
A good example of a fixed cost in most organizations is rent. Regardle...
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- Spring '14