Four common cost behavior patterns that serve as the foundation for cost-volume-profit analysis are
A)Variable cost,fixed cost,mixed cost,and step cost.
B)Variable cost,fixed cost,selling cost,and administrative cost.
C)Cost of goods sold,period cost,other cost,and depreciation.
D)Selling cost,administrative cost,cost of goods sold,and depreciation.

Question

Quizplus · Accepted Answer

These four cost behavior patterns are commonly used in cost-volume-profit analysis. Variable costs vary in proportion to changes in activity levels, fixed costs remain constant regardless of activity levels, mixed costs have both variable and fixed elements, and step costs increase in increments as activity levels increase.

Four Common Cost Behavior Patterns That Serve as the Foundation