Question

Classifying costs by behavior with changes in volume of activity involves: Multiple Choice Identifying fixed cost and variable cost. Identifying cost of goods sold and operating costs. Identifying costs as financial or managerial. Identifying costs in a physical manner. Identifying both quantitative and qualitative cost factors.

Answer 1

Answer:

Identifying fixed cost and variable cost.

Explanation:

• The behavior cost is those costs that will completely change when there are minute changes in the activity and includes the variable and the fixed costs and the semi-variable costs.  

• As an example of the fixed cost is the insurance. While the variable cost is flour for the bakery that produces artisan bread. And that of the semi mixed cost is the cost of the bakery cost and the natural gas.