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Cost behavior

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Reference no: EM1352742

Cost Behavior

Knowledge about the behavior pattern of a cost is important to understanding the effect on net income of a change in sales volume because as sales volume changes:

net income will change proportionately.

the effect on net income will depend on the behavior pattern of various costs.

fixed costs will rise proportionately.

variable costs will not change.

 

Reference no: EM1352742

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