Week 8 – Finance and Accounting
Chapter 9 – Cost-volume-profit analysis
FIXED COSTS
Graph of fixed cost against volume of activity:
- Fixed costs elements are almost always time-based: that is, they vary with the length
of time concerned
- Certain fixed costs are only fixed over a particular range (known as the relevant
range)
Graph of rent cost against the volume of activity:
VARIABLE COST
Graph of variable cost against the volume of activity:
Chapter 9 – Cost-volume-profit analysis
FIXED COSTS
Graph of fixed cost against volume of activity:
- Fixed costs elements are almost always time-based: that is, they vary with the length
of time concerned
- Certain fixed costs are only fixed over a particular range (known as the relevant
range)
Graph of rent cost against the volume of activity:
VARIABLE COST
Graph of variable cost against the volume of activity:
