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October 22, 2014

Homework Help: MANAGEMENT ACCOUNTING

Posted by BONNIE on Wednesday, March 24, 2010 at 8:27pm.

COSTS CAN BE CLASSIFIED INTO TWO CATEGORIES FIXED AND VARIABLE COSTS THESE COST BEHAVE DIFFERENTLY BASED ON THE LEVEL OF VOLUME SUPPOSE WE ARE RUNNING A RESTAURANT AND HAVE IDENTIFIED CERTAIN COST ALONG WITH THE NUMBER OF ANNUAL UNIT SOLD OF 1000 TOTAL COST OF RAW MATERIAL TOTAL ANNUAL COST 650 IF WE INCREASE OUR SALE VOLUME TO 6000 UNITS AND THEN TO 8000 UNIT THE FOLLOWING YEAR AND ARE STILL WITHIN THE RELEVANT RANGE WHAT WOULD BE THE TOTAL ANNUAL COST AND UNIT COST OF FIXED AND VARIABLE

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