cost behaviorknowledge about the behavior pattern, Business Management

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cost behaviorknowledge about the behavior pattern

Cost Behavior

Knowledge about the behavior pattern of a cost is important to understanding the effect on net income of a change in sales volume because as sales volume changes:

net income will change proportionately.

the effect on net income will depend on the behavior pattern of various costs.

fixed costs will rise proportionately.

variable costs will not change.

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Business Management: cost behaviorknowledge about the behavior pattern

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