Chapter 7 - management personnel ii. Not able to be changed...

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Chapter 7 – Costing, Forecasting Expenses, and Account Analysis A. Committed and Discretionary Fixed Costs a. Discretionary i. Managers choose how much to spend on advertising, R & D, training for employees, charitable contributions, and maintenance ii. Able to be cut back or increased easily 1. Helps management hit their numbers 2. Reduce these costs if business isn’t going well b. Committed i. Organization’s ownership or use of facilities and its basic organization structure 1. Property taxes, depreciation on buildings and equipment, costs of renting facilities or equipment, and salaries of
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Unformatted text preview: management personnel ii. Not able to be changed at managements discretion B. Learning Curve a. Costs of production decrease as experience accumulates C. Relevant Range a. Within, Fixed Costs are fixed, and Variable Costs are fixed per unit b. The range in which a company does business i. Should focus on this range, for cost structure could be way off out of it D. Cost Estimation a. Account Analysis b. Hi-Lo c. Visual Fit d. Least Squares Regression E. Cost Prediction...
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This note was uploaded on 04/10/2008 for the course ACC 1102 taught by Professor West during the Spring '08 term at Villanova.

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