Which one of the following is least likely to be a fixed cost?
a. Rent for building.
b. Rent for land.
c. Cost of Commodity Inputs.
d. Cost of property, plant, and equipment.
In cost accounting, the cost behavior indicates how the latter will change in totality when there are changes in some activities. Accordingly, it can be classified as either fixed expenses, variable expenses or mixed expenses.
Answer and Explanation: 1
The correct answer is option c. Cost of Commodity Inputs.
- Option A) Rent for a building is incorrect. The said expense will not change with the...
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fromChapter 22 / Lesson 21
Cost behavior is the change in total costs coming from business activities. Learn more about cost behavior, the definitions of fixed, variable, and mixed costs, and the pattern analysis for each type of cost.