Costs are also in the eye of the beholder. For example, to Marriott International
Relation of Cost and Perspective
Hi All,
Costs are also in the eye of the beholder. For example, to Marriott International, each hotel is a variable cost as it can be open or closed and few costs are fixed. To the manager of each hotel, most costs, though, are fixed with the only variable/controllable costs being related to guest services, food, and housekeeping. The change in perspective can change how we look at costs. Management as well as maintenance is viewed as a fixed cost from this perspective.
Should internal and external numbers be looked at the same by managers?
Dr. Bill
Corporate Finance Institute. (2019, September 19). Cost Behavior Analysis. Corporate Finance Institute; Corporate Finance Institute. https://corporatefinanceinstitute.com/resources/knowledge/accounting/cost-behavior-analysis/
8/16/22, 4:04 PM
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