Cost behavior patterns and concepts

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.Click here to view EEC’s journal activity. 

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.

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