To make predictions about costs and income,you must first separate costs by their behavior,
A)Fixed or variable
B)Product or selling and administrative
C)Direct material,direct labor or manufacturing overhead
D)Direct or indirect

Question

Quizplus · Accepted Answer

Separating costs by their behavior into fixed or variable is necessary to make accurate predictions about future costs and income. Fixed costs remain constant regardless of changes in activity levels, while variable costs fluctuate with changes in activity levels. By understanding which costs are fixed and which are variable, a business can better plan for changes in revenue and expenses.

To Make Predictions About Costs and Income,you Must First Separate