A traditional GAAP income statement does not help managers predict the financial results of their decisions because the format of the statement is based on cost function rather than cost behavior.Which of the following is not classified as a cost behavior?
A)Product
B)Fixed
C)Variable
D)All of these ans choices are classified as cost behaviors.

Question

Quizplus · Accepted Answer

Product is not classified as a cost behavior. Cost behavior refers to how a cost changes in relation to changes in volume or activity level, such as fixed costs remaining constant regardless of activity level or variable costs increasing proportionally with activity level. A product is a good or service that a company sells, and is not related to cost behavior.

A Traditional GAAP Income Statement Does Not Help Managers Predict