Cost Behavior Analysis Focuses on

question 29

Multiple Choice

Cost behavior analysis focuses on

• A)how costs react to increases in activity levels only.
• B)how costs will change in the future.
• C)how costs react to changes in activity level.
• D)none of these are correct

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Definitions:

Prevention Costs

Expenditures incurred to prevent defects in products or services, including costs related to quality planning, training, and preventive maintenance.

Defects

Imperfections or faults in a product that cause it to deviate from its intended design, reducing its quality and possibly making it unfit for use.

Services

Economic activities that provide intangible benefits or assistance to consumers, businesses, or other entities.

Quality of Conformance

The degree to which a product or service meets its design specifications and quality standards.