When a manager talks about cost behavior,she is referring to
A)The way in which total costs change in response to changes in the level of activity.
B)The method used to determine whether a cost is accrued or expensed.
C)Both A and B.
D)None of these ans choices are correct.

Question

Quizplus · Accepted Answer

Cost behavior refers to the way in which total costs change in response to changes in the level of activity. This includes understanding the relationship between costs and volume or activity levels, such as how costs increase as production increases or how fixed costs remain constant regardless of production volume. Option B is not related to cost behavior.

When a Manager Talks About Cost Behavior,she Is Referring to