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welcome to accounting and focus today lets talk about cost behavior when i see this from cost behavior i mean what happens to our total cost as our activity level changes so if our activity goes up will our total costs go up along with it so there are four different types of costs that we look at when were talking about cost behavior the first one is a variable cost and a variable cost is a cost that does change in total as our activity level increases so typically when you see a variable cost what were going to do is were going to show it in terms of a per unit basis so we might say 1.50 per unit okay when youre thinking of variable cost what youre thinking of things like direct materials direct labor variable overhead and variable selling general and administrative okay those are your variable costs if variable cost if we have one unit the cost would be a dollar fifty if we had two units it would be three dollars if we had four units it would be 450 okay so notice that for eve
