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UA ACCT 210 - Cost behavior

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ACCT 210 1st Edition Lecture 1Outline of Current Lecture I. Managerial accountingII. Four types of cost behaviora. Variableb. Fixedc. Step-variabled. MixedCurrent Lecture1. Managerial accountinga. Strictly internalb. Does not adhere to GAAP (Generally Accepted Accounting Principles) unlike financial accounting2. Four types of cost behaviora. Variablei. The cost per unit is the same, the total cost increasesUnits Cost per unit Total cost12345$5$5$5$5$5$5$10$15$20$25ii. Cost per unit remains constant with change in volume0 1 2 3 4 5051015202530# of unitsTotal Costb. Fixedi. Total cost remains the same; cost per unit changesUnits Total Cost Cost per unit12345$12$12$12$12$12$12$6$4$3$2.401 2 3 4 502468101214# of unitsTotal costc. Step-variabled.


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UA ACCT 210 - Cost behavior

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