Output cost driver, for example volume of production
How detailed should the analysis be?
Long or short term?
Choice depends on the intended purpose of the cost analysis, for example
short-term budgeting or long-term strategic decision making?
Cost estimation or cost management?
Eg. Pharmaceutical company – the research department sends out blood
samples for examination to an external pathology lab. What is the cost
Identify and analyze different cost behaviors, including variable, fixed, step-fixed,
semivariable and curvilinear