Browse MBAs SECTION 2: Managerial & Cost Accounting

The Cost Behaviour Classifier

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The Cost Behaviour Classifier

Classify these costs by behaviour so I can model what happens as volume
changes.

Cost list: [PASTE OR DESCRIBE THE COSTS AND AMOUNTS]
The activity that drives volume: [UNITS SOLD / HOURS / CUSTOMERS / OTHER]
Relevant range: [ROUGH VOLUME BAND YOU OPERATE IN]

For each cost, tell me:
1. Fixed, variable, or mixed (and if mixed, the fixed and variable parts)
2. The reasoning for that classification
3. What it does per unit as volume rises and falls
4. Which "fixed" costs are actually step-costs that jump at a threshold

End with total fixed cost, variable cost per unit, and a one-line summary
of this business's cost structure and what it implies about risk.

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