Asked by Jennifer Zuniga on Jul 21, 2024
Verified
Cost behavior analysis is a study of how a firm's costs
A) relate to competitors' costs.
B) relate to general price level changes.
C) respond to changes in the level of business activity.
D) respond to changes in the gross national product.
Cost Behavior Analysis
The study of how specific costs change in relation to changes in an organization's activity level.
Business Activity
Any actions undertaken by a company as part of its operations, including production, sales, marketing, and administration.
- Identify cost behavior and how costs respond to changes in business activity.
Verified Answer
RS
Rhonda ShipleyJul 24, 2024
Final Answer :
C
Explanation :
Cost behavior analysis studies how a firm's costs respond to changes in the level of business activity, such as changes in production or sales volume. It does not directly relate to competitors' costs, general price level changes, or changes in the gross national product.
Learning Objectives
- Identify cost behavior and how costs respond to changes in business activity.