Account classification involves categorizing cost accounts as:
A)Product costs and administrative costs.
B)Contribution costs and product costs.
C)Variable costs and fixed costs.
D)Variable costs and product costs.
E)Fixed costs from product costs.

Question

Quizplus · Accepted Answer

Account classification by cost behavior includes categorizing costs as variable costs, which vary with the level of production or service activity, and fixed costs, which remain constant regardless of the level of activity within a relevant range.

Account Classification Involves Categorizing Cost Accounts As