An organization plans to produce and sell 50,000 units.It actually produces and sells 45,000 units.Total costs would be expected to be below the planned level due to cost
A)consciousness.
B)control.
C)reductions.
D)behavior.

Question

Quizplus · Accepted Answer

Cost behavior refers to how costs change in relation to the level of production or sales. Since the organization produced and sold fewer units than planned, total costs would be expected to be lower, reflecting the behavior of costs in response to changes in activity levels.

An Organization Plans to Produce and Sell 50,000 Units