Whether a cost behaves as a fixed cost or as a variable cost depends upon the:
A) activity based used.
B) cost structure of the company.
C) industry.
D) significance of the dollar amount of the cost.

Question

Quizplus · Accepted Answer

The behavior of a cost as either fixed or variable depends on the activity base used, meaning how the cost responds to changes in the level of activity or volume of production.

Whether a Cost Behaves as a Fixed Cost or as a Variable