Flexible Budgets.

Flexible Budgets.

Cost Behaviour: Learning to identify and apply types of costs and marginal costing.

Rest break.....take five mins to get a cuppa!

while kettle is boiling - think about what kind of cost there are?

Types of overheads

Fixed - Total amount is unchanging

Variable - Total amount changes with production level 
- Constant cost per unit
Mixed - Total amount changes with production level
- Changing cost per unit

NUMMERIAL EXAMPLES TYPES OF COSTS

Now we understand the types of costs, let's do some workings!

Multiple Select

Q2 Page 583.

Are Material Costs fixed, variable or mixed?

• Fixed

• Variable

• Mixed

Multiple Choice

Are Production overheads fixed, variable or mixed

• Fixed

• Variable

• Mixed

Now we have our Fixed and cost Spit out.

Could we use them to figure out other levels of production?

Finally, we can use all this information to restate a budget.