Fixed and Variable Costs
You'll remember from the previous post that there's more than one way to define cost. The methods were:
- Differential future cash flows (DFC)
- Cost behaviour in relation to output
- Assignment to cost object
- Financial statement perspective
- Business function
The previous post focused on DFC, and this post is about cost behaviour in relation to output. What's that in english? We're on about fixed and variable costs.
