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5 Cards in this Set
- Front
- Back
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What is Cost Behavior
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Refers to the operational cost concepts of fixed and variable costs
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High-Low Method
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high-low method provides a rough estimate of the fix and variable cost components that comprise total cost
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Cost Behavior when production changes
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Step-variable Costs
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Remain constant in total over a small range of production levels, but vary with larger changes in production volume. Supervisory salaries, utility costs, and shipping costs often behave in this fashion.
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Mixed Costs
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Have a fixed component and a variable component. The variable component causes them to vary in total with changes in volume. The fixed component, however, prevents them from varying in direct proportion to the change in volume.
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