Cost behavior refers to the manner in which:
A) a cost changes as the related activity changes
B) a cost is allocated to products
C) a cost is used in setting selling prices
D) a cost is estimated

Question

Quizplus · Accepted Answer

Cost behavior refers to how a cost changes in response to changes in the level of activity. Costs can be classified as fixed, variable or mixed, based on their behavior in response to changes in activity levels. Allocations, pricing decisions, and estimations are not related to cost behavior.

Cost Behavior Refers to the Manner in Which