Four Common Cost Behavior Patterns That Serve as the Foundation

question 86

Multiple Choice

Four common cost behavior patterns that serve as the foundation for cost-volume-profit analysis are

• A)variable cost, fixed cost, selling cost, and administrative cost.
• B)variable cost, fixed cost, mixed cost, and step cost.
• C)variable cost, fixed cost, period cost, and other cost.
• D)selling cost, administrative cost, cost of goods sold, and depreciation.

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Definitions:

Balance Sheet

A financial statement that provides a snapshot of a company's financial position at a specific point in time, showing assets, liabilities, and equity.

Adjusted Balance

An accounting figure reached after adjusting the book balance of an account for checks and deposits in transit, fees, or errors.

Balance Per Bank

The amount of money that a company's bank account shows according to the bank's records.

Outstanding Checks

Checks that have been written and recorded in the accounting records but have not yet been cashed or cleared by the bank.