Cost behavior analysis focuses on
A)how costs react to increases in activity levels only.
B)how costs will change in the future.
C)how costs react to changes in activity level.
D)none of these are correct

Question

Quizplus · Accepted Answer

Cost behavior analysis studies how costs respond to changes in activity level. It examines whether costs remain the same (fixed costs) or change (variable costs) with changes in the level of activity. It also studies how costs respond to changes in other factors such as production volume, sales volume, or time.

Cost Behavior Analysis Focuses on