Cost behavior is associated with mastering the way costs alter if you find a difference within the organization’s level of activity. The costs which range proportionately with the changes throughout the quality of activity usually are known as adjustable costs. The costs which can be unaffected by simply changes throughout the quality of activity usually are classified that fixed costs. The comprehension of cost behavior can be necessary for calculating any company’s break even point and for virtually any various other cost volume profit research.
