ACC 312- Midterm Exam Guide - Comprehensive Notes for the exam ( 35 pages long!)
Document Summary
Chapter 6 cost behavior, cost estimation, and cost prediction. Chapter 6 summary of part i (this week) and part ii (next week) The three general topics discussed in chapter 6 are: Cost behavior (part i) the relationship between cost and level of activity (volume). Cost prediction (part ii) using the analysis of cost behavior to predict future costs. Cost driver any event or activity that causes costs to be incurred. Variable costs costs that increase or decrease in total in direct proportion to a change in activity level of the cost driver. Example 1 the total cost of steering wheels for a toyota plant varies with the number of toyotas (cost driver) made. However, the steering wheel cost per toyota will not vary depending on the amount of toyotas made. Example 2 the paper cost of tests will vary with the number of students each professor has in their class, however the paper cost per student will not vary.
