Cost Behavior Patterns and Concepts

750 – 1,000 words (not including title page and references)

Part 1

As EEC’s corporate business financial analyst, you will need to have a clear understanding of the different types of costs (variable, fixed, and mixed) that the company carries. Complete the following for this assignment:

Review EEC’s journal activity.
Define and identify its variable, fixed, and mixed costs.
Determine what affect a sales volume increase or decrease will have on unit fixed cost, unit variable cost, total fixed cost, and total variable cost.
Part 2

As an EEC corporate business financial analyst, you must have an expert understanding of the various costing methods. Select 1 of the following costing concepts:

Full costing or absorption costing
Variable costing
Target costing
Life cycle costing
Activity-based costing
Respond to the following questions on the costing concept that you selected:

Provide the definition of the concept.
Discuss how and when the concept could be used by EEC.
Discuss the advantages and disadvantages of the concept as it relates to EEC.

20190111021657eec_s_journal_activity.

Solution Preview

Part 1

The Eddison Electronic Company has a total of thirty-three activities that have been included in the journal entries, indicating the operation with the highest and the lowest amount. Variable costs are the costs that proportionally change depending on the goods and services that are produced by a business. Among some of the variable costs that are included in the ECC’s journal entries are like selling expense, purchases of raw material and supplies factory.

(832 words)