in 3 to 4 sentences reply to the statement below about what you think about Classifying Costs and Decision Making

  • explain a method to organize cost and discuss why this technique is the best choice?One method to classify costs will be fixed prices often called semi-variable values, which both contains a variable cost component and a fixed component (Pearson & Churyk, 2014). When changes in production/sales occur, proportionately to change in activity. This is the best choice because a significant advantage of the high- low method is that it is relatively simple to calculate. It enables an estimate of fixed costs, and variable values can be found in a short- time, with only basic mathematics and no expensive programs to run the calculations, allowing for any company to invest finite resources elsewhere (Pearson & Churyk, 2014).
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