Ask Question
27 May, 09:30

Cost behavior refers to the manner in which a cost a. is allocated to products b. is estimated c. changes as the related activity changes d. is used in setting selling prices

+2
Answers (1)
  1. 27 May, 09:41
    0
    The correct answer is letter "C": changes as the related activity changes.

    Explanation:

    Cost behavior refers to the changes in total costs in front of changes due to certain events. Cost behavior is responsible for companies to classify costs in fixed costs - total costs do not vary even if there are changes in production, variable costs - total costs change when production changes, and mixed costs which is a combination of fixed and variables costs.

    For a company, rent represents a fixed cost while raw materials represent a variable cost.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Cost behavior refers to the manner in which a cost a. is allocated to products b. is estimated c. changes as the related activity changes ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers