The relationship between cost and activity is termed as:
A)cost estimation.
B)cost prediction.
C)cost behaviour.
D)cost analysis.
E)cost approximation.

Question

Quizplus · Accepted Answer

Cost behavior refers to how costs change as the level of activity changes. This relationship can be described as variable, fixed or mixed, which helps in estimating and predicting costs. Therefore, option C is the most appropriate choice. Option A, B, D and E are related to the process of analyzing or estimating costs, but do not refer specifically to the relationship of costs with activity.

The Relationship Between Cost and Activity Is Termed As