Fixed and Variable Cost Behavior: Fixed cost lump-sum amount remains the same for a given period while the variable cost for per unit produced remains same. When cost behavior is discussed, an estimation must be made about operating levels. To calculate the company’s fixed cost, variable cost, total cost and average cost per cup of coffee at various levels of activity as given.
Fixed and Variable Cost Behavior: Fixed cost lump-sum amount remains the same for a given period while the variable cost for per unit produced remains same. When cost behavior is discussed, an estimation must be made about operating levels. To calculate the company’s fixed cost, variable cost, total cost and average cost per cup of coffee at various levels of activity as given.
Fixed and Variable Cost Behavior: Fixed cost lump-sum amount remains the same for a given period while the variable cost for per unit produced remains same. When cost behavior is discussed, an estimation must be made about operating levels.
To calculate the company’s fixed cost, variable cost, total cost and average cost per cup of coffee at various levels of activity as given.
2.
To determine
Fixed and Variable Cost Behaviour: Fixed cost lump-sum amount remains the same for a given period while the variable cost for per unit produced remains same. When cost behaviour is discussed, an estimation must be made about operating levels.
To determine whether the average cost per cup of coffee served increase, decrease or remain the same as the number of cups coffee served in a week increases.
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