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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
Apollo Company manufactures a single product that sells for $168 per unit and whose total variable costs are $126 per unit. The company's annual fixed costs are $630,000. (1) Use t
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