Cost behavior analysis is a study of how a firm's costs
A) relate to competitors' costs.
B) relate to general price level changes.
C) respond to changes in the level of business activity.
D) respond to changes in the gross national product.

Question

Quizplus · Accepted Answer

Cost behavior analysis studies how a firm's costs respond to changes in the level of business activity, such as changes in production or sales volume. It does not directly relate to competitors' costs, general price level changes, or changes in the gross national product.

Cost Behavior Analysis Is a Study of How a Firm's