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8_murik_8 [283]
3 years ago
11

Cost behavior ______. categorizes costs as fixed, mixed and variable is a detailed analysis technique used to determine whether

costs are fixed or variable refers to how a cost will change as activity level changes is the relative proportion of each type of cost in an organization
Business
1 answer:
Alexxandr [17]3 years ago
8 0

Answer:

The correct option is;

Refers to how a cost will change as activity level changes

Explanation:

Cost behavior is defined as the specification of the manner in which cost will vary in total in response to a change in the activity of some other factors. There are three types of cost behavior as outlined in cost accounting and managerial accounting branches of accounting including;

1) Fixed cost; The fixed cost remains the same relative to the changes in activity

2) Variable cost; The variable cost varies with an increase or decrease proportionately with the level of activity

3) Semivariable or mixed cost; Mixed cost are partially fixed cost such as the cost of gaining maintenance of a power generating plant including the purchase of fuel.

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