An Introduction to Cost Behavior
Lynch, Luann J.
Technical Note
An Introduction to Cost Behavior
C-2510 | Published April 14, 2025 | 11 pages. Technical Note
Collection: Darden School of Business
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This note provides an introduction to cost behavior, or how a cost changes in response to changes in activity. It covers variable costs, fixed costs, mixed costs, and step-fixed costs and discusses several methods of estimating cost functions, including scatterplots, the high-low method, and linear regression.
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