Cost behaviour, Managerial Accounting

How costs behave as the level of activity/volume changes. Why an understanding of cost behaviour is important ?


Variable e.g. petrol, direct materials

Fixed e.g. car tax, factory rental

Semi-variable (Hybrid) e.g. phone bill. Cost separation is the process of separating the fixed and variable elements of a semi variable cost. 


High – Low Method

Regression Analysis

Cost Separation

Why an understanding of cost behaviour is important ?

Unit Costing


Decision Making


Break-even analysis

Posted Date: 7/12/2012 6:18:55 AM | Location : United States

Related Discussions:- Cost behaviour, Assignment Help, Ask Question on Cost behaviour, Get Answer, Expert's Help, Cost behaviour Discussions

Write discussion on Cost behaviour
Your posts are moderated
Related Questions
The following information pertains to Fairways Driving Range, Inc.: The company is considering operating a new driving range facility in Sanford, FL. In order to do so, they will

Characteristics of standard costing 1) Flow of information : in a standard costing system cost information flows in a straight forward manner as material is requisitioned and

Your company is considering investing in its own transport fleet. The presentposition is that carriage is contracted to an outside organization. The life of thetransport fleet woul

Management Accounting An accounting discipline concerned with the use of financial information. It used to relevant information by managers and other decision makers inside a s

Parameter prediction error: This is another aspect of faulty planning. As Hongren says, ‘planning decisions are based on predictions of future costs, future selling price, fut

Stock turnover ratio  Meaning: this ratio establishes a relation ship between costs of goods sold and average inventory. Objective: the objective of component of this r

Cost driver analysis Cost drivers are factors, which determine the costs of an activity i.e. a change in the cost driver will cause a change in the level of total cost relate

Variances Analysis Variances are the differences between actual results and expected results. Expected results are the standard costs and standard revenues. Price, rate and

Determine Cost pool and Cost drivers Cost pool: it is another name given to a cost centre and,  therefore an activity cost centre may also be termed as an activity cost pool.

Lock Box System:   In this type of system, the customers are advised to mail their payments to a post office box hired through the firm for collection purposes near their region. T