When it comes to business decisions, understanding the cost behavior is an important part of the process. What does this mean for your company?
The cost behavior refers to how a specific variable changes in relation to other variables that have an effect on its total costs. For example, when you increase production by one unit or 10 units, what happens to the total number of costs?
This blog post will help you understand what the cost behavior means and why it’s so important for your company! Keywords: Cost Behavior, Total Costs , Production, Variable , Variable Cost, Fixed Costs Heading:
What is the Cost Behavior? Every business decision has a cost attached to it.
Whether that be labor costs or production costs; there will always be an expense associated with it. The manner in which these total costs change when variables are altered can either make or break your company and you won’t know until you understand what they mean!
In order to get a better understanding of this concept, let’s take a look at how some different types of businesses would experience changes in their cost behavior.. Number: 0 ~~ Bullet Point Text: N/A ~~ Paragraph Counts: 74-0 The Value Add – Page Content (Page Load Time) #text