Cost Behavior

Determining Cost Behavior: Please respond to one of the following:

Option 1

Choose a company that interests you. It could be your current employer, a past employer, or even a future employer. Compare and contrast the cause and effect of multiple cost drivers within the organization. What would be the ramifications associated with choosing an incorrect cost driver?

Option 2

Create a scenario where using the high-low method results in flawed decisions for pricing or performance evaluations. Determine the benefits of using the regression analysis in the scenario.