Cost types (fixed cost, variable cost, and semi-variable cost)

Posted on Updated on

It is first thing Monday morning and your boss requested your presence ASAP. As you go to your meeting without even getting a second cup of coffee, you ponder the objective of the meeting.

You believe it must have something to do with the fact that your visit to Harmony Organs has been moved up. There is a lot of pressure to cut costs and Linda Kaye wants to continue with the next step. Mickelle Bride, the CEO of Harmony Organs, is often called the ear of the company. She has been able to craft pipes with overtones and harmonics that would make Stradivarius cry.

Linda Kaye would like you to explain to Mickelle the importance of understanding the different cost types (fixed cost, variable cost, and semi-variable cost) when undertaking cost-cutting measures.

Also use an example to explain to her the importance of cost estimation. Mickelle is very good at math so she will be interested in the accuracy of visual fit, high-low, or least-squares regression.

Use the online library to locate at least one resource that will support your answer.

Write your initial response in 3–4 paragraphs. Apply APA standards to citation of sources.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s