Please Complete the Following by 3pm and email to instructor as a Word Attachment.

1. What is a Variable cost?

 

2. What is a Fixed Cost?

 

3. What is a Step Cost?

 

4. What is a Mixed Cost?

 

5. Why is it important to know the behavior of costs?

 

6. What is Contribution Margin and why do we use it?

 

7. What is the difference between costing and cost behavior?

 

8. Which costing method would we want to use if we whished to pay less in taxes? Why?

 

9. Which costing method would we want to use if we whished to impress a bank? Why?