Which of the following most accurately explains the behaviour of costs?

Question

Quizplus · Accepted Answer

There is no norm; costs can be fixed, variable or a combination of both. The behavior of costs varies depending on the nature of the business, the industry, and factors such as production volume, labor, and technology. It is possible for some costs to be fixed and some to be variable, or for costs to change depending on the level of production but also have a minimum level that remains constant. Therefore, costs can be any combination of fixed, variable, or a mix of both.

Which of the Following Most Accurately Explains the Behaviour of Costs