When a manager talks about cost behavior, she is referring to
A)the way in which total costs change in response to changes in the level of activity.
B)the method used to determine whether a cost is accrued or expensed.
C)the classification of product or period costs.
D)the way in which costs are allocated.

Question

Quizplus · Accepted Answer

Cost behavior refers to how total costs change in response to changes in the level of activity. It involves examining how fixed and variable costs behave and how they are influenced by changes in volume or other factors such as inflation or changes in technology.

When a Manager Talks About Cost Behavior, She Is Referring