On Your Test
Cost Behavior - Fixed and Variable

You will be expected to know the following for multiple choice concept
      questions. Almost all questions will relate to these things:     
         The definition of a variable cost and how it behaves/changes
         The definition of a fixed cost and how it behaves/changes
         The definition of a mixed cost and how it behaves/changes
         The definition of a relevant range and why it is important
         Identifying a cost as an opportunity cost, sunk cost, committed cost,
            or discretionary cost
         Identifying a cost as a variable cost, a mixed cost, or a fixed cost
         How does the cost per unit change for a particular cost 
         How does the total cost change for a particular cost
 
You will be asked to do the following on problems and multiple choice 
      problems that require calculations. It boils down to this:
         Cost will be given either in a list form or in a paragraph form and you will
            be asked to do the following:
                  Identify the cost as either a fixed, mixed, or variable cost
       
                  Identify the cost as a committed or discretionary cost
                  Sort out and total fixed, mixed, and variable costs