Cost Behavior Refers To

question 31

Multiple Choice

Cost behavior refers to:

• A) costs that are both good and bad.
• B) costs that increase at a quicker rate than others.
• C) costs that decrease at a quicker rate than others.
• D) costs that are variable or fixed.
• E) None of these.

---

Definitions:

Current Liabilities

Short-term obligations that will be paid or settled within the coming year in cash, goods, other current assets, or services.

Gross Profit Percentage

A financial metric that shows the proportion of profit a company makes after subtracting the cost of goods sold from its total revenue.

Net Sales Revenue

The amount of revenue generated from sales after deducting returns, allowances for damaged goods, and discounts.

Earnings Per Share

A financial ratio that measures the amount of a company's net income allocated to each outstanding share of common stock.