When managers talk about cost behavior,they are referring to
A)Where a cost is reported on the income statement.
B)The way in which total costs change in response to changes in the level of activity.
C)The method used to determine whether a cost is accrued or expensed.
D)None of these ans choice are correct.

Question

Quizplus · Accepted Answer

Cost behavior refers to how a cost changes in response to changes in the level of activity. It helps managers understand how costs are affected by changes in production or sales volume, by identifying fixed, variable, and mixed costs. Cost behavior is critical in decision-making processes such as forecasting, budgeting, and pricing to ensure companies operate efficiently and profitably.

When Managers Talk About Cost Behavior,they Are Referring to