How can global companies like Apple and Google apply the concept of understanding the behavior of costs and its shift for pricing assessments, cutting costs, and budgeting expenses?

A good example of a company using cost behavior understanding for pricing, cost-cutting, and budgeting is Amazon. Amazon's pricing strategy is dynamic and changes based on various factors such as demand, competition, and cost of goods sold. They use cost behavior analysis to understand how their costs change with the level of output or activity. This helps them in setting competitive prices and maximizing profits.

For cost-cutting, Amazon uses its understanding of cost behavior to identify areas where costs can be reduced without affecting the quality of service. For instance, they have automated many of their warehouses which has significantly reduced their labor costs.

In terms of budgeting, Amazon uses cost behavior analysis to forecast future costs based on projected levels of activity. This helps them in planning their financial resources effectively.

A software company can use several strategies to understand the behavior of costs and manage their budget. Firstly, they can use cost accounting to identify the costs associated with each project or product. This can help them understand where their money is going and identify areas for cost reduction. Secondly, they can use financial modeling to predict future costs based on past data. This can help them plan their budget more accurately. Thirdly, they can use benchmarking to compare their costs with those of similar companies in the industry. This can help them identify areas where they are spending more than necessary. Lastly, they can use software tools for budget management and cost tracking, which can provide real-time insights into their spending.