Asked by Tehilla Peyamipour on May 05, 2024
Verified
Cost behavior refers to the manner in which a cost changes as the related activity changes.
Cost Behavior
The manner in which a cost changes in relation to its activity base (driver).
Activity Changes
Variations or alterations in the level of operations, processes, or actions within an organization that can impact performance and outcomes.
- Understand the principles of cost behavior and how it impacts managerial accounting.
Verified Answer
KI
KAMAL IRFANMay 09, 2024
Final Answer :
True
Explanation :
Cost behavior is the way in which a cost changes based on changes in the associated activity level. It can be classified as variable, fixed, or mixed depending on the nature of the cost and how it changes with the level of activity.
Learning Objectives
- Understand the principles of cost behavior and how it impacts managerial accounting.
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