There are four common cost behavior patterns that serve as the foundation for cost-volume-profit analysis.
Required:
a.Explain the term cost behavior.
b.List the four common cost behavior patterns that serve as the foundation for cost-volume-profit analysis and give an example of each type of cost classified by behavior.
c.Explain the relationship between level of activity and each of the four types of cost behavior.

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The Answer of There are four common cost behavior patterns that serve as the foundation for cost-volume-profit analysis.
Required:
a.Explain the term cost behavior.
b.List the four common cost behavior patterns that serve as the foundation for cost-volume-profit analysis and give an example of each type of cost classified by behavior.
c.Explain the relationship between level of activity and each of the four types of cost behavior.

There Are Four Common Cost Behavior Patterns That Serve as the Foundation