When graphing cost behavior,each point best represents one pair of:
A)Revenue and activity values.
B)Fixed cost and revenue values.
C)Variable cost and revenue values.
D)Cost and activity values.

Question

Quizplus · Accepted Answer

When graphing cost behavior, the best representation of each point is one pair of cost and activity values. This is because cost behavior refers to how costs change in response to changes in activity levels, and thus the cost and activity values are the most relevant and accurate representation of this relationship. While revenue values may also be graphed alongside cost behavior, they are not necessary to determine cost behavior and are not always directly related to cost changes. Fixed and variable costs may also be graphed alongside activity levels, but they are not paired with revenue values and do not provide a complete picture of cost behavior on their own.

When Graphing Cost Behavior,each Point Best Represents One Pair Of