The activity that causes changes in the behavior of costs is referred to as the activity
A) index.
B) multiplier.
C) element.
D) correlation.

Question

Quizplus · Accepted Answer

The activity that causes changes in the behavior of costs is known as the activity index. This can be a change in production volume, a change in the number of employees, or any other factor that affects costs. The activity index is used to help managers understand how costs will change as they adjust their level of activity.

The Activity That Causes Changes in the Behavior of Costs