Asked by Jennifer Gonzalez on Jun 07, 2024
Verified
Classifying costs by behavior involves:
A) Identifying fixed cost and variable cost.
B) Identifying cost of goods sold and operating costs.
C) Identifying all costs.
D) Identifying costs in a physical manner.
E) Identifying both quantitative and qualitative cost factors.
Operating Costs
Operating Costs are the expenses associated with the day-to-day functionalities of a business, excluding costs related to production.
- Identify the distinctions among fixed, variable, and mixed costs considering their behavioral patterns and significance in making decisions.
Verified Answer
MS
Mohamed SalehJun 12, 2024
Final Answer :
A
Explanation :
Classifying costs by behavior involves identifying fixed costs (costs that stay the same regardless of production levels) and variable costs (costs that change based on production levels).
Learning Objectives
- Identify the distinctions among fixed, variable, and mixed costs considering their behavioral patterns and significance in making decisions.