How a particular cost behaves (fixed versus variable)is dependent on whether the cost is classified as direct or indirect.

Question

Quizplus · Accepted Answer

How a particular cost behaves (fixed versus variable) is dependent on the volume or activity level, not on whether the cost is classified as direct or indirect. Direct or indirect classification refers to the relationship of the cost to the production process or final product, not its behavior.

How a Particular Cost Behaves (Fixed Versus Variable)is Dependent on Whether