Asked by JORDAN ESCOBAR on Jun 10, 2024
Verified
The relationship between cost and activity is called:
A) cost prediction.
B) cost behaviour.
C) cost analysis.
D) cost approximation.
Cost Behaviour
The way in which costs change in relation to alterations in an organization's level of activity.
- Identify and explain the concept of cost behavior.
Verified Answer
VC
Vipin ChandranJun 15, 2024
Final Answer :
B
Explanation :
The relationship between cost and activity is called cost behavior. Cost behavior refers to how costs change in relation to changes in volume, such as changes in production or sales levels. Understanding cost behavior is important for management decision-making and budgeting purposes.
Learning Objectives
- Identify and explain the concept of cost behavior.
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