Question
Question 11 3 pts Which of the following is not one of the costs under the cost classifications for predicting cost behaviour: direct cost step-fixed cost mixed cost fixed cost
Answer
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Lawrence
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Answer
At the end of the analysis, we can hence conclude that the 'direct cost' is not one of the cost classifications used for predicting cost behaviour.
Explanation
## Step 1: Understanding the types of costsFirstly, we need to begin by recognizing the different types of costs under the cost-classification for predicting cost behaviour. 1. Direct cost: these are costs which can be attributed directly to a cost object such as a department, process, or product. 2. Step-fixed cost: These are costs that remain fixed for a certain level of activity or time period, but then change once the level of activity or time duration reaches a particular threshold level. 3. Mixed cost: This is a cost that has both variable and fixed cost components.4. Fixed cost: These are costs that do not vary with the level of output or activity in the short run.## Step 2: Identifying non-classified costThe type of cost under consideration here does not fall into one of the classes in such that can't be directly attributed to cost behaviour. That is, we need to discern which cost does not change in relation to cost actions.