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i want to talk about cost behavior
not how they act around
people one whatever that how they act
according to the activity that they are helping produce so let's talk about
variable fixed and mix cost
and he kept happening
and this is not their function which is what we've been studying the poor
and talk about how they had a
so the first we have that we talk about his burial costs
on our part unit they
that variable cost stays constant
so that means they are we have any chocolate chip cookie
the chocolate chips for one cookie cost forty cents elisha concepts
printed cookies he would cost eighty cents out of the forty cents is purple d
net i would always stay tuesday believe this place is forty-six no matter how
many units we met
does that make sense
internal battle it that would be written so they would have been positive ***
and they would increase by two boys this is one thirty basis is to and so forth
so that's the grass with a very low cost
now it's concert
they say the same no matter what we produce
so what's an example of this cost
rent
salaries we have to pay that even if we don't produce anything or selling day so
in total business costs a lot like that it will cost more
linear you could have car karen cases or ten
it's not the same
ran as a hundred dollars whether we
use the place or not
but over spreading out over units the more we use that the more that fixed
cost per unit
what does that now we don't really talk much about this graph right here
but we can tell me and allows cost if women activity changes and its cost
change
that me and i think the faster you should did it looks like a fixed
last month dot battle will deprive it's been a book cost
i think next sorry is gave up and next
spandex cost has a component of the book so he used to be like to utility like
stop us
allow you to leesburg pike this what do you think you're not you have a base
amanda
but then the more you use it the more cost per minute or whatever so it's the
combination of both
so in total the graphics like the ethics exports and and then india and it's like
a variable portion on top of that
in
great unit it's a platter latin on a permanent basis sibling analyzing these
costs you can tell if you've got that per unit
and i'd like to do is take the talent by department we've gotten in total you can
eliminate
which cause they are in general and hamming what we're gonna deal with the
manager tony
is being retired
six different behaviors or three different sixty progress
okay retract one x one bus stop here