Question

The three most common cost behavior classifications are:___________A. variable costs, product costs, and sunk costs B. fixed costs, variable costs, and mixed costs C. variable costs, period costs, and differential costs D. variable costs, sunk costs, and opportunity costs

Answer 1

Answer:

B. fixed costs, variable costs, and mixed costs

Explanation:

Mainly there are three types of cost i.e variable cost, fixed cost, and the mixed cost. The variable cost is that cost which is change when the production level change whereas the fixed cost is that cost which remains constant whether production level changes or not .  

The mixed cost is a semi-variable cost which include some part of the fixed cost and some part of the variable cost

So, the variable cost includes indirect material, indirect labor, and factory supplies

The fixed cost includes supervision, taxes, and depreciation expense.  

And, the mixed cost includes insurance, utilities, etc.