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Cost Behavior and Operating Income

posted Nov 28, 2016, 4:07 AM

Variable costs are directly proportionate to the level ofproduction activity for the period. So if your units produceincrease, then your variable costs will increase. Fixed costsremain constant over a wide range of production activity so nomatter what your amount of production, your fixed cost remains thesame. Semi-variable costs have a fixed element and a variableelement. Your utility bill would be a good example of that cost.How do you first, figure out how to separate fixed vs variablecosts in semi-variable costs to allocate to jobs? AND I'm going tostretch you...what are stepped fixed costs?

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Nelly Stracke
Nelly StrackeLv2
28 Sep 2019

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