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Variable cost behavior - PowerPoint PPT Presentation

Chapter 5

Chapter 5. Cost Behavior. Learning Objective 1. Describe the differences between fixed costs and variable costs. Example. Laura Jorgensen is planning a party. She identifies two major costs: 1. Entertainment (a live band) 2. Food and drinks. $3,650 was spent last year on this party:

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CHAPTER 3 DEVELOPING A BUSINESS PLAN: COST-VOLUME-PROFIT ANALYSIS

CHAPTER 3 DEVELOPING A BUSINESS PLAN: COST-VOLUME-PROFIT ANALYSIS. Chapter Overview. Since the future is uncertain and circumstances are likely to change, why should a company bother to plan? What should a company include in its business plan?

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Cost Analysis

3. Cost Analysis. Prepared by Douglas Cloud Pepperdine University. Objectives. Understand the importance of cost management. Describe the two aspects of managing costs. Distinguish between value-added and non-value-adding activities and costs.

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Variable cost behavior - PowerPoint PPT Presentation

Chapter 5

CHAPTER 3 DEVELOPING A BUSINESS PLAN: COST-VOLUME-PROFIT ANALYSIS

Cost Analysis