If costs are classified 'by changes in activity or volume' then which of the following is the correct classification?

CS Executive · Cost and Management Accounting · PYQS · June 2019
If costs are classified 'by changes in activity or volume' then which of the following is the correct classification?
(A) Fixed Cost, Variable Cost and Semi-variable Cost
(B) Historical Cost, Pre-determined Cost, Standard Cost, Estimated Cost
(C) Production Cost, Administration Cost, Selling Cost, Distribution Cost, Research and Development Cost
(D) Material, Labour and Expenses

Answer & Explanation:

Correct Answer: Option (A)

Official answer key: (A).

Topics: Cost Concepts

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