Cost behavior refers to the manner in which a cost changes as the related activity changes.

Understand the Problem

The question is asking about the concept of cost behavior, specifically how costs react or change in relation to different levels of activity. The options provided indicate that the focus is on the relationship between costs and activity changes.

More Information

Cost behavior is crucial in understanding how various costs respond to changes in business activity levels. It involves analyzing whether costs are fixed, variable, or mixed.

Tips

A common mistake is to misunderstand which costs change with activity levels. It's essential to distinguish between fixed, variable, and mixed costs.

Sources

• Solved Cost behavior refers to the manner in which a ... - Chegg - chegg.com
• Cost behavior refers to the manner in which - Homework.Study.com - homework.study.com