Asked by Sarah Elizabeth on May 03, 2024
Verified
Cost behavior refers to the manner in which a cost changes as the related activity changes.
Cost Behavior
The way in which costs change in relation to changes in a business' levels of activity or production volume.
Related Activity
Activities or actions that are associated with or pertinent to a main activity or topic.
- Understand the influence of cost behavior on managerial choices.
Verified Answer
JE
Jesse EbingerMay 10, 2024
Final Answer :
True
Explanation :
Cost behavior refers to how a cost responds to changes in the level of activity or volume of goods or services produced or sold. Common cost behaviors include variable costs, fixed costs, mixed costs, and step costs.
Learning Objectives
- Understand the influence of cost behavior on managerial choices.
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