Tag Archives for " cost behavior "

Relevant range and cost behavior analysis

What is relevant range? Relevant range is one of those REALLY important concepts in managerial accounting. It’s pretty major but it does not get the attention it deserves. Most professors and authors

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Fixed Cost

Fixed costs can be a tricky business. They might seem simple but if you think too much, you might get tripped up. Just like with variable cost, fixed costs are named because of how the cost behaves in

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Variable Cost

When thinking about cost behavior, think about how the cost behaves in total. A variable cost is a cost that varies in total. The cost increases or decreases based on a related activity. The formula for

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Cost Behavior: Introduction to Fixed and Variable Costs

The idea of cost behavior is one of the most important concepts in managerial accounting. Determining how a cost will behave is critical to planning, decision making and controlling. Two types of costs

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