Descriptions of cost behavior as fixed or variable pertain to a particular range of activity.

Question

Quizplus · Accepted Answer

Cost behavior is not constant and can change depending on the level of activity. Therefore, descriptions of cost behavior as fixed or variable pertain to a particular range of activity. For example, if the production volume surpasses a certain level, the cost per unit of production may change from fixed to variable, or vice versa.

Descriptions of Cost Behavior as Fixed or Variable Pertain to a Particular