What is the focus of cost behaviour analysis?
A) the reaction of costs to changes in time
B) the reaction of costs to changes in profit
C) the reaction of costs to changes in benefit
D) the reaction of costs to changes in activity level

Question

Quizplus · Accepted Answer

Cost behavior analysis focuses on how costs react to changes in activity level. In other words, it examines how costs change in response to changes in the volume of goods or services produced by a company. This analysis is important for businesses because it helps them to understand the cost structure of their operations and make decisions about pricing, production levels, and other key variables.

What Is the Focus of Cost Behaviour Analysis