Cost behavior analysis is an important tool for not only businesses but also individuals, to use to understand profits. Think of your personal expenses you pay each month when responding to the following:

• Explain what the difference between the three costs are: variable, fixed, and mixed costs.
• List at least four expenses you pay on a monthly basis. Classify each of these expenses into one of the three categories: variable, fixed, or mixed. Explain why the expense is in that category.
• How would you reduce yourvariable expenses in order to save money each month?
• In your opinion, is it beneficial to analyze cost behavior? Explain.