The purpose of this activity is to help students to identify the concepts fixed and variable costs, distinguish between value$-$adding and non$-$value$-$adding activities and costs and apply the appropriate method of analyzing cost behavior to a situation.

See the following video: Fixed and Variable Costs $($Managerial Accounting$)$ at Managerial Accounting. Fixed and Variable Costs $($voutube com$)$

When you see the video you may able to:

Identify and differentiate the concepts fixed and variable costs.

Distinguish between value$-$adding and non$-$value$-$adding activities and costs

Apply the appropriate method of analyzing cost behavior to a situation.