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Behavioral Classification of Costs
Definition
Cost behavior refers to the change in costs as increase or may decrease like the output level changes that are like we rising output, are the costs increasing, remaining or dropping the similar.
Cost Behavior can be utilized to produce different classifications of costs like:
a) Variable Costs Vs. Fixed Costs
b) Direct Vs. Indirect costs
c) Controllable Vs. Non Controllable costs
High - Low Method of Cost Estimation Now, cost estimation is based upon the relationship between past level and past cost of activity. Variable cost is based on the relationsh
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