Cost behavior analysis refers to management’s attempt to understand how operating costs change in relation to a change in an organization’s level of activity.
Fixed and variable cost behaves:-
- This cost behavior design is called a variable cost.
- A variable taken a toll portrays a taken a toll that changes in add up to with changes in volume of action.
- The movement in this case is the number of bicycles delivered and sold. Be that as it may, the movement can take numerous distinctive shapes depending on the organization.
- The two most common variable costs are coordinate materials and coordinate labor. Other cases incorporate roundabout materials and vitality costs.
- This cost behavior design is called a settled fetched.
- A fixed cost depicts a fetched that's fixed (does not alter) in add up to with changes in volume of action.
- Expecting the action is the number of bicycles delivered and sold, illustrations of fixed costs incorporate salaried staff, building lease, and protections.
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