ACCT20001 Lecture Notes - Lecture 3: Cost Driver, Focus Group, Fixed Cost
5 Jun 2018
School
Department
Course
Professor
ACCT20001 Cost Management - Tutorial Week 3
1. Bhimani et al 6e: 2.14; 2.15; 2.16
2.14
Classification of costs, service sector
(15–20 min)
Cost object: Each individual focus group.
Cost variability: With respect to changes in the number of focus groups.
There may be some debate over classifications of individual items. Debate is more
likely as regards cost variability.
Cost item D or I V or F
A D V
B
I F
C
I Va
D
I F
E
D V
F
I F
G
D V
H
I Vb
a Some students will note that phone call costs are variable when each call has a separate charge. It may be a
fixed cost if Presta-Serviços has a flat monthly charge for a line, irrespective of the amount of usage.
b Petrol costs are likely to vary with the number of focus groups. However, vehicles likely serve multiple
purposes and detailed records may be required to examine how costs vary with changes in one of the many
purposes served.
Document Summary
Acct20001 cost management - tutorial week 3: bhimani et al 6e: 2. 14; 2. 15; 2. 16. Cost variability: with respect to changes in the number of focus groups. There may be some debate over classifications of individual items. Debate is more likely as regards cost variability. Vb a some students will note that phone call costs are variable when each call has a separate charge. It may be a fixed cost if presta-servi os has a flat monthly charge for a line, irrespective of the amount of usage. Petrol costs are likely to vary with the number of focus groups. However, vehicles likely serve multiple purposes and detailed records may be required to examine how costs vary with changes in one of the many purposes served. Cost variability: with respect to changes in the number of films sold, assumptions may be made over classifications of individual items. This is mainly in relation to cost variability.
