The three most common cost behavior classifications are
A) variable costs, product costs, and sunk costs
B) fixed costs, variable costs, and mixed costs
C) variable costs, period costs, and differential costs
D) variable costs, sunk costs, and opportunity costs

Question

Quizplus · Accepted Answer

The three most common cost behavior classifications are fixed costs, variable costs, and mixed costs. Option A is incorrect because product costs are a subset of fixed and variable costs, and sunk costs are not a type of cost behavior. Option C is incorrect because period costs are a type of cost classification that is different from cost behavior classification, and differential costs refer to the change in cost when switching from one option to another. Option D is incorrect because sunk costs and opportunity costs are not cost behavior classifications, but rather types of costs in other categories.

The Three Most Common Cost Behavior Classifications Are