There Are Four Common Cost Behavior Patterns That Serve as the Foundation

Essay

There are four common cost behavior patterns that serve as the foundation for cost-volume-profit analysis.
Required:
a.Explain the term cost behavior.
b.List the four common cost behavior patterns that serve as the foundation for cost-volume-profit analysis and give an example of each type of cost classified by behavior.
c.Explain the relationship between level of activity and each of the four types of cost behavior.