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What is Basic Cost Management Concepts about?

Cost behavior refers to how costs change with activity levels. Understanding cost behavior allows managers to predict how costs will change under different alternatives to avoid potential disasters. Costs can be classified in various ways including by type, function, traceability, relevance for decision making, and behavior. Managers must understand these cost concepts to properly classify, assign, and analyze costs for planning, control, and decision making purposes.

Author

wingsenigma 00

Language

EN