Learn About the Different Cost Behavior Patterns from the Correct Source
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Our cost behavior patterns assignment help services are tailor-made for your academic requirements. Not only is the basic concept covered, even detailed discussion is provided to help you complete your assignment in a proper manner.
What is cost behavior pattern?
Cost behavior patterns refer to the way business and operating expenses remain stable or change through various events. Patterns may change particularly when the sales volume or production level vary within the company.
Cost is classified fixed, variable and mixed cost depending on the behavior patterns. This understanding of the basic idea of cost behavior patterns is a must while doing your assignments and homework. Opting for cost behavior patterns homework help service is a great way to have a better understanding.
Fixed Costs
Fixed costs occur regardless of the sales volume or production levels of the business. Rent, loan, and insurance payments are examples of such costs. Depreciation on equipment, property taxes and non-consumption services like Internet usage are other examples of fixed costs. Some fixed costs may change temporarily depending on business activity.
For instance, if a new product is released by a companion, the expenses for promotion would exceed the normal levels. The fixed cost may change as per the discretion of management.
Variable costs
Variable cost is another thing you will learn about once you get cost behavior patterns homework help from our experts. The totals of variable cost change because of activity within the business. For example, the cost of labor and direct materials is associated with production levels in a manufacturing operation. With production of more units, more labor hours, machine hours and materials would be needed.
In a similar manner, the variable cost in a business that provides service shall fluctuate according to the required equipment and supplies, labor costs of support personnel and necessary travel expenses. Variable costs experienced by a merchandiser include shipping expenses, sales commissions, and inventory management.
Mixed costs
When you hire our cost behavior patterns homework help service, you will also get to know about mixed costs, which share certain characteristics with variable and fixed costs. Suppose, a monthly utility has a flat rate for a certain limit of water, electricity and gas consumption and extra costs after those limits are exceeded.
The costs are fixed during low activity, in which the flat rate levels are not exceeded by the business. Similarly, during high production, consumption is increased, and extra costs are incurred, which means the total cost varies.
Importance of cost behavior patterns
Recognizing cost behavior patterns is important for a company. It allows the management to budget in a manner to maximize profits and costs. It also allows company to set realistic sales and production goals. You will get to know all this and more when you hire our cost behavior patterns assignment help service. We at myhomeworkhelp.com are always at your service!
