Cost behavior refers to the manner in which a cost

A) changes as the related activity changes
B) is allocated to products
C) is used in setting selling prices
D) is estimated

Question

Cost behavior refers to the manner in which a costA) changes as the related activity changesB) is allocated to productsC) is used in setting selling pricesD) is estimated

Riley Driscoll · Accepted Answer

Final Answer : A, Explanation :  Cost behavior refers to how a cost changes in response to changes in the level of an activity (such as production volume, sales volume, or number of labor hours). This is a fundamental concept in cost accounting and helps managers make better decisions related to production, pricing, and overall business strategies. Choices B, C, and D are not accurate definitions of cost behavior.

Cost behavior refers to the manner in which a cost

A) changes as the related activity changes
B) is allocated to products
C) is used in setting selling prices
D) is estimated

Definitions

Learning Objectives

Learning Objectives

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