Topic 3 Chapter 6 - Cost Behavior Prediction & Estimation Note

University:
York University
Course:
SB/ACTG 2020 | Management Accounting Concepts
Academic year:

2024
Views:

123

Pages:

1
Author:

Niklas

TOPIC 3: chpt 6 typeA type B Coat behavior relationship between csaladiviny 5,000 u cost prediction forecast of cost at a particular tevel of achivity 3,500 $1,000 to change 413 cost estimation determination of cost behavior, can be accomplished in a number of woyt identify cost behavior Variable coat changes in total in direct proportion to a change in the activity loved cales common) type Aj variable, type B, fised, type C, semi-vanable Shop-variable cost om tearly variable, but they increase in small stepe instead of connuously fixed cost romoins unchanged in total at the actinty levd vernica. Leg straight lins dep, adratiang) Step-friend cost remain fred over a wide range of adivity tout jung to a different amount for activity leviz ovisióe that range graph a series of mangernd heriaorts lines) Zem-vanabis coel her both a find of variabile campenont relevomt range is that range of activity where management expects the firm to operate within the relevant range of activity, coats can be sathmated with reasonable accuracy committed cost results from on organization's ownership or use of facilities & as batio organization structure discretionary cost arises as a result of a management decision to spend a particular amount of money for some purposes engineered cast bears a definitive pryncol relationship to the activity measure account classification method involves careful examination of the organization's ledger accounts vizual fit method when analyst has ne ides doout behavior of a cast ihre or cost has born Gasified as semivable this method is use to plat rent servations of coal of various hyle least-squares regression method used to estimate objectivag a cast behavior pallem wing all of the available data