cost behaviour

The changes that occur to total costs as a result of changes in activity levels within an organization. The total of the fixed costs tends to remain unaltered by changes in activity levels in the short term, whereas the total of the variable costs tends to increase or decrease in proportion to activity. There are also some costs that demonstrate semi-variable cost behaviour, i.e. they have both fixed and variable elements. The study of cost behaviour is important for breakeven analysis and also when considering decision-making techniques.

Accounting dictionary. 2014.

Look at other dictionaries:

  • cost behaviour — The changes that occur to total costs as a result of changes in activity levels within an organization. The total of the fixed costs tends to remain unaltered by changes in activity levels in the short term, whereas the total of the variable… …   Big dictionary of business and management

  • cost prediction — The estimation of future cost levels based on historical cost behaviour characteristics, using such statistical techniques as linear regression …   Accounting dictionary

  • Cost-benefit analysis — is a term that refers both to:* a formal discipline used to help appraise, or assess, the case for a project or proposal, which itself is a process known as project appraisal; and * an informal approach to making decisions of any kind. Under both …   Wikipedia

  • Cost-of-production theory of value — In economics, the cost of production theory of value is the theory that the price of an object or condition is determined by the sum of the cost of the resources that went into making it. The cost can compose any of the factors of production… …   Wikipedia

  • cost minimization — The behavioural assumption that an individual or firm will seek to purchase a given amount of goods or inputs at the least cost, other things being equal. By making certain assumptions, there will exist a single cost minimizing combination of… …   Big dictionary of business and management

  • linear cost function — Cost behaviour that, when plotted on a graph against activity levels, results in a straight line. For example, total fixed cost levels and variable costs per unit of activity will both result in a straight line horizontal to the x axis when… …   Accounting dictionary

  • linear cost function — Cost behaviour that, when plotted on a graph against activity levels, results in a straight line. For example, total fixed cost levels and variable costs per unit of activity will both result in a straight line horizontal to the x axis when… …   Big dictionary of business and management

  • aggressive behaviour — Any action of an animal intended to injure an opponent or prey animal or to cause an opponent to retreat. Aggression may be caused by various stimuli. Within its own group, an animal must display aggressive postures to maintain its position… …   Universalium

  • collective behaviour — ▪ psychology Introduction       the kinds of activities engaged in by sizable but loosely organized groups of people. Episodes of collective behaviour tend to be quite spontaneous, resulting from an experience shared by the members of the group… …   Universalium

  • voting behaviour — Voting is the main form of political participation in liberal democratic societies and the study of voting behaviour is a highly specialized sub field within political science . The analysis of voting patterns invariably focuses on the… …   Dictionary of sociology

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.