E the unit contribution margin as discussed above

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Unformatted text preview: sts for maintaining the lawnmowers ( which are costs of maintenance that are allocated to the Mowing prod uction center) _________________________________________________________________________________________________________ ____________________________________________________________________________________________________________ David W. Young • Management Accounting for Managers • Chapter 2 Page 28 Copyrighted Material. Do not reproduce without written permission. In reviewing this exhibit, keep in mind that terms can vary. Sometimes, as was discussed in Chapter 1, “service center costs,” are called “indirect” costs, and sometimes they are called “overhead” costs. In general, the context will make the meaning clear. Cost Behavior in Organizations Generally, an organization's costs can be classified as either fixed, step-function, variable, or semi-variable. Doing so requires analyzing the actual or expected behavior of each cost item in the organization, and attempting to determine how these costs change with changes in the volume of activity. •••••••••••••••••••••••••••••••••••••••••••••••••...
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