AKUNTANSI MANAJEMEN OPENCOURSEWARE UNIVERSITAS PEMBANGUNAN JAYA ch3 Slide ACC204 ch3
3 -1
CHAPTER
Activity Cost
Behavior
3 -2
Objectives
Objectives
1. Define cost behavior
for fixed,
variable, and
After
studying
this
After studying this
mixed costs.chapter, you should
chapter, you should
2. Explain the role be
of
the
resource
usage
model
able
to:
be able to:
in understanding cost behavior.
3. Separate mixed costs into their fixed and
variable components using the high-low
method, the scatterplot method, and the
method of least squares.
continued
continued
3 -3
Objectives
Objectives
4. Evaluate the reliability of a cost equation.
5. Discuss the role of multiple regression in
assessing cost behavior.
6. Describe the use of managerial judgment in
determining cost behavior.
3 -4
A
Acost
cost that
that stays
stays the
the
same
same as
as output
output changes
changes
isis aa fixed
fixed cost.
cost.
Fixed
Fixed Costs
Costs
3 -5
Fixed
Fixed Costs
Costs
Cutting machines are
leased for $60,000 per
year and have the
capacity to produce up
to 240,000 units a year.
3 -6
Total Costs
Total Fixed Cost Graph
$120,000
$100,000
$80,000
$60,000
$40,000
$20,000
F = $60,000
Fixed
Fixed Costs
Costs
0
60 120 180 240
Units Produced (000)
Lease of
Machines
$60,000
60,000
60,000
60,000
60,000
Number
of Units
0
60,000
120,000
180,000
240,000
Units
Cost
N/A
$1.00
0.50
0.33
0.25
3 -7
Cost per Unit
Unit Fixed Cost Graph
$1.00
Fixed
Fixed Costs
Costs
$0.50
$0.33
$0.25
0
60 120 180 240
Units Produced (000)
Lease of
Machines
$60,000
60,000
60,000
60,000
60,000
Number
of Units
0
60,000
120,000
180,000
240,000
Units
Cost
N/A
$1.00
0.50
0.33
0.25
3 -8
A
Avariable
variable cost
cost isis aa cost
cost that,
that,
in
in total,
total, varies
varies in
in direct
direct
proportion
proportion to
to changes
changes in
in
output.
output.
Variable
Variable
Cost
Cost
Variable
Variable Cost
Cost
As the cutting machines cut each unit,
they use 0.1 kilowatt-hour at $2.00 per
kilowatt hour. Thus, the cost of each
unit is $0.20 ($2 x 0.1).
3 -9
3 -10
Total Costs
Total Variable Cost Graph
$48,000
$36,000
Yv = .20x
Variable
Variable Cost
Cost
$24,000
$12,000
0 60 120 180 240
Units Produced (000)
Cost of
Power
$
0
12,000
24,000
36,000
48,000
Number
of Units
0
60,000
120,000
180,000
240,000
Units
Cost
$ 0
0.20
0.20
0.20
0.20
3 -11
Cost per Unit
Unit Variable Cost Graph
$0.40
$0.30
Variable
Variable Cost
Cost
$0.20
$0.10
0
60 120 180 240
Units Produced (000)
Cost of
Power
$
0
12,000
24,000
36,000
48,000
Number
of Units
0
60,000
120,000
180,000
240,000
Units
Cost
$ 0
0.20
0.20
0.20
0.20
3 -12
A
Amixed
mixed cost
cost isis aa cost
cost
that
that has
has both
both aa fixed
fixed and
and
aa variable
variable component.
component.
3 -13
Sales representatives
often are paid a
salary plus a
commission on sales.
Total Costs
Mixed Cost Behavior
3 -14
$130,000
$110,000
$90,000
$70,000
$50,000
$30,000
0
40 80 120 160 180 200
Units Sold (000)
Inserts
Sold
40,000
80,000
120,000
160,000
200,000
Variable
Cost of
Selling
Fixed
Cost of
Selling
Total
Selling
Cost
Selling
Cost per
Unit
$ 20,000
40,000
60,000
80,000
100,000
$30,000
30,000
30,000
30,000
30,000
$ 50,000
70,000
90,000
110,000
130,000
$1.25
0.86
0.75
0.69
0.65
3 -15
Activity Cost Behavior Model
Input:
Materials
Energy
Labor
Activities
Activity
Output
Capital
Changes
in Input
Cost
Changes
in Output
Cost Behavior
3 -16
Flexible
Flexible resources
resources are
are
resources
resources acquired
acquired as
as used
used
and
and needed.
needed. Materials
Materials and
and
energy
energy are
are examples.
examples.
3 -17
Committed
Committed resources
resources are
are supplied
supplied in
in
advance
advance of
of usage.
usage. Buying
Buying or
or leasing
leasing aa
building
building isis an
an example
example of
of this
this form
form of
of
advance
advance resource
resource acquisition.
acquisition.
3 -18
A
Astep
step cost
cost displays
displays aa constant
constant level
level
of
of cost
cost for
for aa range
range of
of output
output and
and then
then
jumps
jumps to
to aa higher
higher level
level of
of cost
cost at
at
some
some point.
point.
Step-Cost Behavior
3 -19
Step-Cost Behavior
Cost
$500
400
300
200
100
10
20
30
40
50
Activity Output (units)
3 -20
Step-Fixed Costs
Cost
$150,000
Normal
Operating
Range
(Relevant
Range)
100,000
50,000
2,500
5,000
Activity Usage
7,500
3 -21
Step-Cost
Step-Cost Behavior
Behavior
Three engineers hired at $50,000 each
Each engineer is capable of processing 2,500
change orders
$90,000 was spent on supplies for the
engineering activity
There were 6,000 orders processed
The company could process as many as 7,500
orders
3 -22
Step-Cost
Step-Cost Behavior
Behavior
Available orders = Orders used + Orders unused
7,500 orders = 6,000 orders + 1,500 orders
Fixed engineering rate
= $150,000/7,500
= $20 per change order
Variable engineering rate = $90,000/6,000
= $15 per change order
3 -23
Step-Cost
Step-Cost Behavior
Behavior
The relationship between resources supplied and
resources used is expressed by the following
equation:
Resources available = Resources used + Unused
capacity
3 -24
Step-Cost
Step-Cost Behavior
Behavior
Cost of orders supplied = Cost of orders used +
Cost of unused orders
= [($20 + $15) x 6,000] + ($20
x 1,500)
= $240,000
The $30,000 of excess engineering capacity
means that a new product could be
Equal to the $150,000 spent on
introducedengineers
without and
increasing
current
the $90,000
spending
on engineering.
spent
on supplies.
3 -25
Methods
Methods for
for Separating
Separating Mixed
Mixed Costs
Costs
The High-Low Method
The Scatterplot Method
The Method of Least Squares
Variable
Component
Fixed
Component
3 -26
The linearity assumption
assumes that variable costs
increase in direct proportion to
the number of units produced
(or activity units used).
3 -27
Methods
Methods for
for Separating
Separating Mixed
Mixed Costs
Costs
Y = a + bx
Total Cost
Total Fixed
Variable
Number of
CostCostUnits
per
Unit
3 -28
The
The High-Low
High-Low Method
Method
Month
January
February
March
April
May
Setup Costs
$1,000
1,250
2,250
2,500
3,750
Setup Hours
100
200
300
400
500
Step
Step 1:
1: Solve
Solve for
for variable
variable cost
cost (b)
(b)
3 -29
The
The High-Low
High-Low Method
Method
Month
January
February
March
April
May
Setup Costs
$1,000
1,250
2,250
2,500
3,750
b=
Setup Hours
100
200
300
400
500
High Cost – Low Cost
High Units – Low Units
3 -30
The
The High-Low
High-Low Method
Method
Month
January
February
March
April
May
Setup Costs
$1,000
1,250
2,250
2,500
3,750
b=
Setup Hours
100
200
300
400
500
High
$3,750
Cost – Low Cost
High500
Units –– Low
Low Units
Units
3 -31
The
The High-Low
High-Low Method
Method
Month
January
February
March
April
May
Setup Costs
$1,000
1,250
2,250
2,500
3,750
b=
Setup Hours
100
200
300
400
500
$3,750 – Low
$1,000
Cost
500 – Low
100
Units
3 -32
The
The High-Low
High-Low Method
Method
b=
$3,750 – $1,000
500 –
100
bb == $6.875
$6.875
Step
Step 2:
2: Using
Using either
either the
the high
high cost
cost or
or low
low cost,
cost,
solve
solve for
for the
the total
total fixed
fixed cost
cost (a).
(a).
3 -33
The
The High-Low
High-Low Method
Method
Y =
$3,750 =
$312.50 =
a +
b
(x)
a + $6.875(500)
a
High
End
Y =
$1,000 =
$312.50 =
a +
b
(x)
a + $6.875(100)
a
Low
End
The cost formula using the high-low method is:
Total cost = $312.50 + ($6.875 x Setup hours)
3 -34
The
The Scatterplot
Scatterplot Method
Method
The
The Scatterplot
Scatterplot Method
Method
Nonlinear Relationship
Activity
Cost
*
*
*
*
*
0
Activity Output
3 -35
The
The Scatterplot
Scatterplot Method
Method
Upward Shift in Cost Relationship
Activity
Cost
*
*
0
*
*
*
*
Activity Output
3 -36
The
The Scatterplot
Scatterplot Method
Method
Presence of Outliers
Activity
Cost
*
*
Estimated
fixed cost
0
*
*
*
*
Estimated
regression
line
Activity Output
3 -37
The
The Method
Method of
of Least
Least Squares
Squares
Month
Jan
Feb
Mar
Apr
May
Setup Costs Setup Hours
1,000
100
1,250
200
2,250
300
2,500
400
3,750
500
Spreadsheet Data for
Larson Company
3 -38
The
The Method
Method of
of Least
Least Squares
Squares
Regression Output:
Constant
Std. Err of Y Est
R Squared
No. of Observation
Degrees of Freedom
X Coefficient(s)
Std. Err of Coef.
125
299.304749934466
0.944300518134715
5
3
6.75
0.9464847243
Regression Output for
Larson Company
3 -39
The
The Method
Method of
of Least
Least Squares
Squares
The results give rise to the following equation:
Setup costs = $125 + ($6.75 x Setup hours)
R2 = .944, or 94.4 percent of the variation in
setup costs is explained by the number of setup
hours variable.
3 -40
Coefficient
Coefficient of
of Correlation
Correlation
3 -41
Positive Correlation
r approaches +1
Machine Utilities
Hours
Costs
Machine Utilities
Hours
Costs
Coefficient
Coefficient of
of Correlation
Correlation
3 -42
Negative Correlation
r approaches -1
Hours of Industrial
Safety Accidents
Training
Hours of Industrial
Safety Accidents
Training
Coefficient
Coefficient of
of Correlation
Correlation
3 -43
No Correlation
r~0
Hair Accounting
Length
Grade
Hair Accounting
Length
Grade
3 -44
Multiple
Multiple Regression
Regression
TC = b0 + ( b1X1) + (b2X2) + . . .
b0 = the fixed cost or intercept
b1 = the variable rate for the first independent variable
X1 = the first independent variable
b2 = the variable rate for the second independent variable
X2 = the second independent variable
3 -45
Multiple
Multiple Regression
Regression
Month
Jan
Feb
Mar
April
May
June
July
August
Sept
Oct
Nov
Dec
Mhrs
1,340
1,298
1,376
1,405
1,500
1,432
1,322
1,416
1,370
1,580
1,460
1,455
Summer
0
0
0
0
1
1
1
1
1
0
0
0
Utilities Cost
$1,688
1,636
1,734
1,770
2,390
2,304
2,166
2,284
1,730
1,991
1,840
1,833
Data for Phoenix Factory
Utilities Cost Regression
3 -46
Multiple
Multiple Regression
Regression
Constant
Std Err of Y Est
R Squared
No. of Observation
Degrees of Freedom
X Coefficient(s)
Std Err of Coef.
243.1114997159
55.5082829356447
0.96717927255452
12
9
1.0971575051946
0.210226332115593
510.49073361447
32.5489464532519
Multiple Regression for Phoenix
Factory Utilities Cost
3 -47
Multiple
Multiple Regression
Regression
The results gives rise to the following equation:
Utilities cost = $243.11 + $1.097(Machine hours) +
($510.49 x Summer)
R2 = .967, or 96.7 percent of the variation in utilities
cost is explained by the machine hours and summer
variables.
3 -48
Managerial
Managerial Judgment
Judgment
Managerial
Managerial judgment
judgment isis critically
critically
important
important in
in determining
determining cost
cost
behavior,
behavior, and
and itit isis by
by far
far the
the most
most
widely
widely used
used method
method in
in practice.
practice.
3 -49
Chapter Three
The
The End
End
3 -50
CHAPTER
Activity Cost
Behavior
3 -2
Objectives
Objectives
1. Define cost behavior
for fixed,
variable, and
After
studying
this
After studying this
mixed costs.chapter, you should
chapter, you should
2. Explain the role be
of
the
resource
usage
model
able
to:
be able to:
in understanding cost behavior.
3. Separate mixed costs into their fixed and
variable components using the high-low
method, the scatterplot method, and the
method of least squares.
continued
continued
3 -3
Objectives
Objectives
4. Evaluate the reliability of a cost equation.
5. Discuss the role of multiple regression in
assessing cost behavior.
6. Describe the use of managerial judgment in
determining cost behavior.
3 -4
A
Acost
cost that
that stays
stays the
the
same
same as
as output
output changes
changes
isis aa fixed
fixed cost.
cost.
Fixed
Fixed Costs
Costs
3 -5
Fixed
Fixed Costs
Costs
Cutting machines are
leased for $60,000 per
year and have the
capacity to produce up
to 240,000 units a year.
3 -6
Total Costs
Total Fixed Cost Graph
$120,000
$100,000
$80,000
$60,000
$40,000
$20,000
F = $60,000
Fixed
Fixed Costs
Costs
0
60 120 180 240
Units Produced (000)
Lease of
Machines
$60,000
60,000
60,000
60,000
60,000
Number
of Units
0
60,000
120,000
180,000
240,000
Units
Cost
N/A
$1.00
0.50
0.33
0.25
3 -7
Cost per Unit
Unit Fixed Cost Graph
$1.00
Fixed
Fixed Costs
Costs
$0.50
$0.33
$0.25
0
60 120 180 240
Units Produced (000)
Lease of
Machines
$60,000
60,000
60,000
60,000
60,000
Number
of Units
0
60,000
120,000
180,000
240,000
Units
Cost
N/A
$1.00
0.50
0.33
0.25
3 -8
A
Avariable
variable cost
cost isis aa cost
cost that,
that,
in
in total,
total, varies
varies in
in direct
direct
proportion
proportion to
to changes
changes in
in
output.
output.
Variable
Variable
Cost
Cost
Variable
Variable Cost
Cost
As the cutting machines cut each unit,
they use 0.1 kilowatt-hour at $2.00 per
kilowatt hour. Thus, the cost of each
unit is $0.20 ($2 x 0.1).
3 -9
3 -10
Total Costs
Total Variable Cost Graph
$48,000
$36,000
Yv = .20x
Variable
Variable Cost
Cost
$24,000
$12,000
0 60 120 180 240
Units Produced (000)
Cost of
Power
$
0
12,000
24,000
36,000
48,000
Number
of Units
0
60,000
120,000
180,000
240,000
Units
Cost
$ 0
0.20
0.20
0.20
0.20
3 -11
Cost per Unit
Unit Variable Cost Graph
$0.40
$0.30
Variable
Variable Cost
Cost
$0.20
$0.10
0
60 120 180 240
Units Produced (000)
Cost of
Power
$
0
12,000
24,000
36,000
48,000
Number
of Units
0
60,000
120,000
180,000
240,000
Units
Cost
$ 0
0.20
0.20
0.20
0.20
3 -12
A
Amixed
mixed cost
cost isis aa cost
cost
that
that has
has both
both aa fixed
fixed and
and
aa variable
variable component.
component.
3 -13
Sales representatives
often are paid a
salary plus a
commission on sales.
Total Costs
Mixed Cost Behavior
3 -14
$130,000
$110,000
$90,000
$70,000
$50,000
$30,000
0
40 80 120 160 180 200
Units Sold (000)
Inserts
Sold
40,000
80,000
120,000
160,000
200,000
Variable
Cost of
Selling
Fixed
Cost of
Selling
Total
Selling
Cost
Selling
Cost per
Unit
$ 20,000
40,000
60,000
80,000
100,000
$30,000
30,000
30,000
30,000
30,000
$ 50,000
70,000
90,000
110,000
130,000
$1.25
0.86
0.75
0.69
0.65
3 -15
Activity Cost Behavior Model
Input:
Materials
Energy
Labor
Activities
Activity
Output
Capital
Changes
in Input
Cost
Changes
in Output
Cost Behavior
3 -16
Flexible
Flexible resources
resources are
are
resources
resources acquired
acquired as
as used
used
and
and needed.
needed. Materials
Materials and
and
energy
energy are
are examples.
examples.
3 -17
Committed
Committed resources
resources are
are supplied
supplied in
in
advance
advance of
of usage.
usage. Buying
Buying or
or leasing
leasing aa
building
building isis an
an example
example of
of this
this form
form of
of
advance
advance resource
resource acquisition.
acquisition.
3 -18
A
Astep
step cost
cost displays
displays aa constant
constant level
level
of
of cost
cost for
for aa range
range of
of output
output and
and then
then
jumps
jumps to
to aa higher
higher level
level of
of cost
cost at
at
some
some point.
point.
Step-Cost Behavior
3 -19
Step-Cost Behavior
Cost
$500
400
300
200
100
10
20
30
40
50
Activity Output (units)
3 -20
Step-Fixed Costs
Cost
$150,000
Normal
Operating
Range
(Relevant
Range)
100,000
50,000
2,500
5,000
Activity Usage
7,500
3 -21
Step-Cost
Step-Cost Behavior
Behavior
Three engineers hired at $50,000 each
Each engineer is capable of processing 2,500
change orders
$90,000 was spent on supplies for the
engineering activity
There were 6,000 orders processed
The company could process as many as 7,500
orders
3 -22
Step-Cost
Step-Cost Behavior
Behavior
Available orders = Orders used + Orders unused
7,500 orders = 6,000 orders + 1,500 orders
Fixed engineering rate
= $150,000/7,500
= $20 per change order
Variable engineering rate = $90,000/6,000
= $15 per change order
3 -23
Step-Cost
Step-Cost Behavior
Behavior
The relationship between resources supplied and
resources used is expressed by the following
equation:
Resources available = Resources used + Unused
capacity
3 -24
Step-Cost
Step-Cost Behavior
Behavior
Cost of orders supplied = Cost of orders used +
Cost of unused orders
= [($20 + $15) x 6,000] + ($20
x 1,500)
= $240,000
The $30,000 of excess engineering capacity
means that a new product could be
Equal to the $150,000 spent on
introducedengineers
without and
increasing
current
the $90,000
spending
on engineering.
spent
on supplies.
3 -25
Methods
Methods for
for Separating
Separating Mixed
Mixed Costs
Costs
The High-Low Method
The Scatterplot Method
The Method of Least Squares
Variable
Component
Fixed
Component
3 -26
The linearity assumption
assumes that variable costs
increase in direct proportion to
the number of units produced
(or activity units used).
3 -27
Methods
Methods for
for Separating
Separating Mixed
Mixed Costs
Costs
Y = a + bx
Total Cost
Total Fixed
Variable
Number of
CostCostUnits
per
Unit
3 -28
The
The High-Low
High-Low Method
Method
Month
January
February
March
April
May
Setup Costs
$1,000
1,250
2,250
2,500
3,750
Setup Hours
100
200
300
400
500
Step
Step 1:
1: Solve
Solve for
for variable
variable cost
cost (b)
(b)
3 -29
The
The High-Low
High-Low Method
Method
Month
January
February
March
April
May
Setup Costs
$1,000
1,250
2,250
2,500
3,750
b=
Setup Hours
100
200
300
400
500
High Cost – Low Cost
High Units – Low Units
3 -30
The
The High-Low
High-Low Method
Method
Month
January
February
March
April
May
Setup Costs
$1,000
1,250
2,250
2,500
3,750
b=
Setup Hours
100
200
300
400
500
High
$3,750
Cost – Low Cost
High500
Units –– Low
Low Units
Units
3 -31
The
The High-Low
High-Low Method
Method
Month
January
February
March
April
May
Setup Costs
$1,000
1,250
2,250
2,500
3,750
b=
Setup Hours
100
200
300
400
500
$3,750 – Low
$1,000
Cost
500 – Low
100
Units
3 -32
The
The High-Low
High-Low Method
Method
b=
$3,750 – $1,000
500 –
100
bb == $6.875
$6.875
Step
Step 2:
2: Using
Using either
either the
the high
high cost
cost or
or low
low cost,
cost,
solve
solve for
for the
the total
total fixed
fixed cost
cost (a).
(a).
3 -33
The
The High-Low
High-Low Method
Method
Y =
$3,750 =
$312.50 =
a +
b
(x)
a + $6.875(500)
a
High
End
Y =
$1,000 =
$312.50 =
a +
b
(x)
a + $6.875(100)
a
Low
End
The cost formula using the high-low method is:
Total cost = $312.50 + ($6.875 x Setup hours)
3 -34
The
The Scatterplot
Scatterplot Method
Method
The
The Scatterplot
Scatterplot Method
Method
Nonlinear Relationship
Activity
Cost
*
*
*
*
*
0
Activity Output
3 -35
The
The Scatterplot
Scatterplot Method
Method
Upward Shift in Cost Relationship
Activity
Cost
*
*
0
*
*
*
*
Activity Output
3 -36
The
The Scatterplot
Scatterplot Method
Method
Presence of Outliers
Activity
Cost
*
*
Estimated
fixed cost
0
*
*
*
*
Estimated
regression
line
Activity Output
3 -37
The
The Method
Method of
of Least
Least Squares
Squares
Month
Jan
Feb
Mar
Apr
May
Setup Costs Setup Hours
1,000
100
1,250
200
2,250
300
2,500
400
3,750
500
Spreadsheet Data for
Larson Company
3 -38
The
The Method
Method of
of Least
Least Squares
Squares
Regression Output:
Constant
Std. Err of Y Est
R Squared
No. of Observation
Degrees of Freedom
X Coefficient(s)
Std. Err of Coef.
125
299.304749934466
0.944300518134715
5
3
6.75
0.9464847243
Regression Output for
Larson Company
3 -39
The
The Method
Method of
of Least
Least Squares
Squares
The results give rise to the following equation:
Setup costs = $125 + ($6.75 x Setup hours)
R2 = .944, or 94.4 percent of the variation in
setup costs is explained by the number of setup
hours variable.
3 -40
Coefficient
Coefficient of
of Correlation
Correlation
3 -41
Positive Correlation
r approaches +1
Machine Utilities
Hours
Costs
Machine Utilities
Hours
Costs
Coefficient
Coefficient of
of Correlation
Correlation
3 -42
Negative Correlation
r approaches -1
Hours of Industrial
Safety Accidents
Training
Hours of Industrial
Safety Accidents
Training
Coefficient
Coefficient of
of Correlation
Correlation
3 -43
No Correlation
r~0
Hair Accounting
Length
Grade
Hair Accounting
Length
Grade
3 -44
Multiple
Multiple Regression
Regression
TC = b0 + ( b1X1) + (b2X2) + . . .
b0 = the fixed cost or intercept
b1 = the variable rate for the first independent variable
X1 = the first independent variable
b2 = the variable rate for the second independent variable
X2 = the second independent variable
3 -45
Multiple
Multiple Regression
Regression
Month
Jan
Feb
Mar
April
May
June
July
August
Sept
Oct
Nov
Dec
Mhrs
1,340
1,298
1,376
1,405
1,500
1,432
1,322
1,416
1,370
1,580
1,460
1,455
Summer
0
0
0
0
1
1
1
1
1
0
0
0
Utilities Cost
$1,688
1,636
1,734
1,770
2,390
2,304
2,166
2,284
1,730
1,991
1,840
1,833
Data for Phoenix Factory
Utilities Cost Regression
3 -46
Multiple
Multiple Regression
Regression
Constant
Std Err of Y Est
R Squared
No. of Observation
Degrees of Freedom
X Coefficient(s)
Std Err of Coef.
243.1114997159
55.5082829356447
0.96717927255452
12
9
1.0971575051946
0.210226332115593
510.49073361447
32.5489464532519
Multiple Regression for Phoenix
Factory Utilities Cost
3 -47
Multiple
Multiple Regression
Regression
The results gives rise to the following equation:
Utilities cost = $243.11 + $1.097(Machine hours) +
($510.49 x Summer)
R2 = .967, or 96.7 percent of the variation in utilities
cost is explained by the machine hours and summer
variables.
3 -48
Managerial
Managerial Judgment
Judgment
Managerial
Managerial judgment
judgment isis critically
critically
important
important in
in determining
determining cost
cost
behavior,
behavior, and
and itit isis by
by far
far the
the most
most
widely
widely used
used method
method in
in practice.
practice.
3 -49
Chapter Three
The
The End
End
3 -50