Which of These Most Accurately Explains the Behaviour of Costs

question 47

Multiple Choice

Which of these most accurately explains the behaviour of costs?

• A) The majority of costs are variable per unit of production.
• B) There is no norm; costs can be fixed, variable or a combination of both.
• C) Costs can be fixed or variable but not a combination of both.
• D) The majority of costs are fixed per unit of production.

Know the contents and significance of the statement of changes in equity.

Understand the structure and key components of a statement of financial position.

Grasp the requirements for note disclosures and their significance in financial statements.

Appreciate the importance and implications of reclassification and presentation adjustments post-reporting date.

---

Definitions:

McClelland's Motivation Theory

A theory that identifies three primary motivational needs: the need for achievement, the need for affiliation, and the need for power, which influence human behavior.

Need For Achievement

An individual's desire for significant accomplishment, mastering of skills, control, or high standards.

Need For Affiliation

A person's desire to build and maintain strong, positive relationships with others.

Need For Power

A personal drive to influence, control or have authority over others, as described in McClelland's theory of needs.