A cost that changes as a result of changing activitiesor levels of activities is called which of the following?
A)product cost.
B)department cost.
C)batch cost.
D)differential cost.

Question

Quizplus · Accepted Answer

A cost that changes as a result of changing activities or levels of activities is called a differential cost. This cost is also known as an incremental cost or an avoidable cost because it represents the additional cost incurred from choosing one alternative over another. Product, department, and batch costs are types of costs that can be fixed or variable, meaning they may or may not change with changes in activity levels.

A Cost That Changes as a Result of Changing Activitiesor