finance and accounting recap

Fixed and variable costs:
 Fixed costs = do not change in relation to the output level
 Variable costs = change in relation to the output level
 Cost behavior when output level increases:
Total costs Unit costs
Fixed costs Remain equal Decrease
Proportionally variable Increase Remain equal
costs
 Other types of variable costs:




Degressively Progressively Proportionele
variable variable variable
Costs costs costs

 Behavior of fixed and variable costs for increasing output level:
Total cost Unit cost
Fixed costs Remain equal Reduce
Proportionally variable Increase Remain equal
costs
Digressively variable Increase Reduce
costs
Progressively variable Increase increase
costs