Explain the difference between fixed and variable costs, and give two examples of each.

MODULE 4

DQ1

Assessment Description

Explain the difference between fixed and variable costs, and give two examples of each. Can a company budget for variable costs? Explain using your understanding of the behavior and variable classification of costs. Participate in follow-up discussion by adding additional examples or reasoning to those of a classmate.

DQ2

Assessment Description

Explain the basic components of cost-volume-profit (CVP) analysis. Why is it important to determine a company’s break-even point? Participate in follow-up discussion by adding additional elements or additional rationale to those of a classmate.