Cost Behaviour

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August 31, 2024 3 min read Definitions

Cost Behaviour: Understanding Changes in Total Costs with Activity Levels

Economics Finance Management Cost Behaviour Fixed Costs Variable Costs Semi-Variable Costs Breakeven Analysis

An in-depth examination of cost behaviour, focusing on how total costs change as activity levels fluctuate within an organization. This article explores fixed costs, variable costs, and semi-variable costs, and their implications for decision-making and breakeven analysis.

August 31, 2024 4 min read Definitions

High-Low Method: Predicting Cost Behaviour

Accounting Finance Cost Prediction Cost Behaviour Accounting Techniques Financial Analysis High-Low Method

The High-Low Method is a technique used to predict cost behaviour by plotting observations of cost levels for various activity levels on a graph. A straight line is drawn through the plots at the highest and lowest activity levels, representing the cost behaviour characteristics.