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What is cost behavior?

AVOID brevity and your response should be in your own words. DO NO repeat the words used in your textbook.
1. What are the four methods commonly used to identify the fixed and variable elements of a mixed cost?
2. Identify the strength and weakness of each method identified in question #1.
3. What is cost behavior?
4. List and explain (in detail) what are the perceived advantages of ABC (Activity Based Costing) over the ‘traditional’ method of cost allocation?

Solution:

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