Determine what affect a sales volume increase or decrease will have on unit fixed cost, unit variable cost, total fixed cost, and total variable cost.

Part 1

As EEC’s corporate business financial analyst, you will need to have a clear understanding of the different types of costs (variable, fixed, and mixed) that the company carries. Complete the following for this assignment:
•Review EEC’s journal activity.
•Define and identify its variable, fixed, and mixed costs.
•Determine what affect a sales volume increase or decrease will have on unit fixed cost, unit variable cost, total fixed cost, and total variable cost.

Click here to view EEC’s journal activity.

Part 2

As an EEC corporate business financial analyst, you must have an expert understanding of the various costing methods. Select 1 of the following costing concepts:
•Full costing or absorption costing
•Variable costing
•Target costing
•Life cycle costing
•Activity-based costing

Respond to the following questions on the costing concept that you selected:
•Provide the definition of the concept.
•Discuss how and when the concept could be used by EEC.
•Discuss the advantages and disadvantages of the concept as it relates to EEC.

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