When a Manager Talks About Cost Behavior, She Is Referring

question 75

Multiple Choice

When a manager talks about cost behavior, she is referring to

• A)the way in which total costs change in response to changes in the level of activity.
• B)the method used to determine whether a cost is accrued or expensed.
• C)the classification of product or period costs.
• D)the way in which costs are allocated.

---

Definitions:

Per-unit Tariff

A fixed fee imposed by a government on each unit of imported or exported goods.

Tariff Revenue

Income that a government receives from imposing duties on imported goods.

Foreign Producers

Companies or individuals that manufacture or provide services in one country for consumption in another country.

Domestic Producers

Local or national firms and individuals that produce goods and services within a country.