What does cost behaviour analysis focus on?
A)how costs react to changes in profit
B)how costs change over time
C)how costs react to changes in activity level
D)how costs act in the long term

Question

Quizplus · Accepted Answer

Cost behaviour analysis focuses on how costs react to changes in activity level, such as changes in production volume or sales volume. The analysis helps in understanding the nature of costs and predicting the impact of changes in the activity level on overall costs.

What Does Cost Behaviour Analysis Focus On