Part3：Cost behavior analysis.pptVIP

Part Three Cost Behavior Analysis COST BEHAVIOR ANALYSIS Definition: The study of how specific costs respond to changes in the level of business activity Some costs change; others remain the same Helps management plan operations and make decisions Applies to all types of businesses and entities COST BEHAVIOR ANALYSISContinued Starting point is measuring key business activities Activity levels may be expressed in terms of Sales dollars (in a retail company) Miles driven (in a trucking company) Room occupancy (in a hotel) Dance classes taught (by a dance studio) COST BEHAVIOR AN