Cost Behavior

The video tutorial explains how organizations track and attribute costs to various sources, such as products and activities. It delves into cost behavior, highlighting the use of cost-volume-profit analysis to understand cost sensitivity to production volume changes. The concept of relevant range is introduced, explaining how it helps in determining the range within which cost changes occur. The tutorial categorizes cost behavior into fixed, variable, and mixed costs, with examples of step costs and how they vary with operational levels.

What is the purpose of tracking costs in an organization?

Explain the concept of 'relevant range' in cost behavior.

What are the four types of cost behavior mentioned in the text?

How does a fixed cost differ from a variable cost?

Describe what mixed cost entails.