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Managerial Accounting
Introduction to Managerial Accounting
Jeannie M. Folk
Ray H. Garrison
Eric Noreen

Cost Behavior: Analysis and Use

Chapter Outline

  1. Types of Cost Behavior Patterns
    1. Variable Costs
    2. True Variable versus Step-Variable Costs
    3. The Linearity Assumption and the Relevant Range
    4. Fixed Costs
    5. Types of Fixed Costs
    6. Fixed Costs and the Relevant Range
    7. Mixed Costs
  2. The Analysis of Mixed Costs
    1. The High-Low Method
    2. The Scattergraph Method
    3. The Least-Squares Regression Method
  3. The Contribution Format
    1. Why a New Income Statement Format?
    2. The Contribution Approach




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