Which of the following statements most accurately explains the behavior of costs?
A)Costs can be fixed,variable,or a combination of both.
B)The majority of costs are variable per unit of production.
C)The majority of costs are fixed per unit of production.
D)Mixed costs are treated as variable costs.

Question

Quizplus · Accepted Answer

Costs can be classified as fixed, variable, or a mixture of both. Fixed costs are those that do not fluctuate with changes in production levels, while variable costs increase or decrease with production levels. Mixed costs are costs that have both a fixed and a variable component.

Which of the Following Statements Most Accurately Explains the Behavior