Cost behavior refers to:
A)how costs react to a change in the level of activity
B)whether a cost is incurred in a manufacturing, merchandising, or service company
C)classifying costs as either inventoriable or period costs
D)whether a particular expense has been ethically incurred

Question

Quizplus · Accepted Answer

Cost behavior refers to how costs react to a change in the level of activity. This means that costs can either be fixed, variable, or mixed, depending on whether they remain constant, change proportionately with activity, or have a combination of fixed and variable elements.

Cost Behavior Refers To