Cost behaviour, Managerial Accounting

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

Types

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. 

Methods

High – Low Method

Regression Analysis

Cost Separation

Why an understanding of cost behaviour is important ?

Unit Costing

Pricing

Decision Making

Budgeting

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
Explain product cost Product costs are those costs which are associated with and directly identifiable with the product. In other words, which are assigned to the product are p

THE BREAK EVEN POINT

Determine the The tools and techniques used in management accounting 1. Financial policy and accounting : every concern has to take a decision about the sources of raising fun

Loan Syndication : There are two ways of syndication as: direct lending and through participation. - Direct Lending: regarding "direct lending" all the lenders sign the loa

What are the Objectives of budgetary control 1) Planning : planning is an important managerial function. it helps to decide in advance, what to do how to do it when to do it a

Advantages of ratio analysis 1) Helpful in financial analysis: financial analysis is easier if accounting ratios are used to analyze the different financial statement relatio


QUEUING THEORY When limited facilities fail/delays to satisfy demands made upon them, problems occur which generate queues or waiting lines. Illustrations are: •    Customers

Explain Support activitiesand production process activity Support activities are for example schedule production set up machine purchase materials inspect item customer orde

Once the cash budget has been arranged and suitable net cash flows established the finance manager must ensure that there does not exists an important deviation in between actual a