COMM 294 Lecture Notes - Lecture 1: Technical Support, Toolroom, Brad Henry
Document Summary
Objective: lo 10-1: when estimating linear cost functions, it is assumed that variations in total cost of a cost object cannot be explained by variations in a single cost driver. Explanation: variations in the level of a single activity (the cost driver) explain the variations in the related total costs. Objective: lo 10-1: a mixed cost has a fixed element. Objective: lo 10-1: correctly identifying the cost driver and separating fixed from variable costs are important inputs for many management decisions. Objective: lo 10-1: when estimating a cost function, cost behavior can be approximated by a linear cost function within the relevant range. Objective: lo 10-1: which of the following is an equation of a variable cost function, y = ax + bx, y = a + bx, y = b, y = a, y = bx. Objective: lo 10-1: for april, the month just ended, the cost components to make tapes were per tape plus fixed costs of.
