A finished ACC-260 Topic 2 cost behavior classification example, sorting each cost as variable, fixed or mixed within a stated range and using the sort to support one pricing decision. Searches like "acc 260 topic 2 assignment example", "acc260 topic 2 sample" and "acc-260 topic 2 example" land here.
What a finished ACC-260 Topic 2 cost behavior classification looks like
The finished classification is a table with a reason in every row. Flour, boxes and piece-rate decorating are marked variable because each rises with every tray baked. The oven lease and the manager's salary are marked fixed within a stated range of output, with the range written beside them rather than assumed. Utilities are marked mixed, and the example separates them using the high-low method on six illustrative months, showing both the variable rate and the fixed base it produces. A short note explains why the delivery van, which a functional statement would file under selling expense, is sorted by behavior here instead. The table then does its job: total cost is projected at the volume a catering client has requested, and the quoted price follows from that projection.
How an ACC-260 Topic 2 example is structured
The example moves from a list to a sort and then to a prediction. It opens with the bakery's cost items as they appear on a functional income statement, grouped under production, selling and administration, so the reader sees the arrangement being replaced. A second part defines the three behaviors and fixes the relevant range, since a fixed cost stays fixed only between two volumes. A third part classifies each item, one row apiece, with the reason for the call. A fourth part works the mixed utilities cost with high-low, naming the two months used and why those extremes of activity were chosen. A fifth part rebuilds the cost list in behavioral form. The final part projects total cost at the catering volume and states the lowest price the bakery could accept without losing money on the order.
The functional statement shown first
Production, selling and administrative headings are reproduced before the sort begins, so a reader can see exactly which arrangement the behavioral view replaces.
A relevant range written down
The fixed costs are called fixed only between two stated output levels, because a second oven or another baking shift would move them.
A reason in every row
Each classification carries one line on why the cost moves or holds, which is what a marker checks when two answers look equally plausible.
Mixed cost split by high-low
Utilities are separated into a monthly base and a rate per tray, with the two months chosen named so the arithmetic can be repeated.
The sort put to work
Total cost is projected at the catering volume and the price floor for the order is stated, so the classification ends in a decision.
Where marks go in ACC-260 Topic 2
Sorting by department is where this topic most often goes wrong. A classification that files wages under production and the van under selling has described the company's organization chart and cannot say what anything costs at a new volume. Calling a cost fixed with no range attached claims it will never move, which the first expansion disproves. Direct labor is a frequent misfire: salaried production staff behave as fixed across normal output even though the word direct suggests otherwise, and the example says which case applies. Splitting a mixed cost by eye, or picking two convenient months rather than the highest and lowest activity, produces a rate nobody can reproduce. A table that stops at the labels, with no prediction drawn from it, leaves the classification without the use that justifies it.
Get an ACC-260 Topic 2 example written to your instructions
Send the ACC-260 Topic 2 instructions, your classroom rubric and the cost list or company described in the scenario. A custom example is then written to those criteria, with every cost sorted by behavior, the range stated, any mixed cost split and a projection made from the result, back to you in 24 to 48 hours. The first one is on us.
ACC-260 Topic 2 questions, answered
Is direct labor always a variable cost?
Not in most real operations. Hourly staff sent home when volume drops behave as variable, but salaried or guaranteed-hours production staff are paid the same whether output rises or falls, which makes them fixed within the range. Textbook problems sometimes stipulate labor as variable for simplicity, and when yours does, follow the stipulation and note it in one sentence.
What is the relevant range for?
It marks the volumes within which the classification holds. Rent is fixed until the company needs a second building, and a supervisor's salary is fixed until a second shift needs a second supervisor. Stating the range tells the reader where the projection can be trusted, and a projection running past it should say so openly rather than extend a straight line.
Why use high-low instead of regression?
At this level it is transparent, and transparency is what an introductory topic rewards. High-low uses only two observations, so an unusual month can distort it, and a careful example says whether either of its two points looks abnormal. Where the instructions ask for a scatter plot or a regression, those give a better estimate and the classification logic stays the same.