ch03天津财经大学管理会计中文版.pptxVIP

Activity Cost Behavior;;4. Evaluate the reliability of a cost equation. 5. Discuss the role of multiple regression in assessing cost behavior. 6. Describe the use of managerial judgment in determining cost behavior.;Fixed Costs;Cutting machines are leased for $60,000 per year and have the capacity to produce up to 240,000 units a year.;;;Variable Cost;As the cutting machines cut each unit, they use 0.1 kilowatt-hour at $2.00 per kilowatt hour. Thus, the cost of each unit is $0.20 ($2 x 0.1). ;Total Variable Cost Graph;;;Mixed Costs;Mixed;Activity Cost Behavior Model;Flexible Resources;;;Cost