Asked by Ana Bel Montes on May 10, 2024
Verified
Cost behavior refers to the methods used to estimate costs for use in managerial decision making.
Cost Behavior
The manner in which a cost changes in relation to its activity base (driver).
Managerial Decision Making
Involves the process by which managers make choices among possible alternatives to solve problems and take advantage of opportunities.
- Comprehend how cost behavior affects managerial decision-making.
Verified Answer
CM
Cammie McAnenyMay 17, 2024
Final Answer :
False
Explanation :
Cost behavior refers to how a cost will change or react in relation to changes in business activity levels, such as changes in production volume or sales, not to the methods used to estimate costs.
Learning Objectives
- Comprehend how cost behavior affects managerial decision-making.