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When Managers Talk About Cost Behavior, They Are Referring to the Way

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Essay

When managers talk about cost behavior, they are referring to the way in which total costs change in response to changes of the level of activity.List the four common cost behavior patterns that serve as the foundation for cost-volume-profit analysis and give an example of each.


Definitions:

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Vibrations that travel through a medium (e.g., air, water) and can be heard when they reach a person's or animal's ear.

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A medical specialty that uses radioactive substances in the diagnosis and treatment of diseases.

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