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Which of the following is not one of the costs under the cost classifications for cost behaviour mixed cost fixed cost direct cost step-fixed cost

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Which of the following is not one of the costs under the cost classifications for
cost behaviour
mixed cost
fixed cost
direct cost
step-fixed cost

Which of the following is not one of the costs under the cost classifications for cost behaviour mixed cost fixed cost direct cost step-fixed cost

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DaisyVeteran · Tutor for 9 years

Answer

C - Direct cost

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## Step1: <br />The question is asking us to identify which of the given costs does not fall under the classifications for cost behaviour. The classifications refer to how various costs behave or change in response to business activity (for instance, changes in production levels or sales volumes).<br /><br />## Step2:<br />From previous knowledge, we understand that fixed costs are those that remain constant regardless of the level of business activity or output. Mixed costs, also known as semi-variable costs, are a combination of fixed and variable costs; they change with fluctuations in activity, but not proportionally. Step costs remain the same for a given range of business activity, but at a certain threshold, they increment to a higher level. <br /><br />## Step3: <br />With this knowledge, we have identified "direct cost" from the given list as not fitting under the classifications of cost behaviour. Direct costs, in essence, are costs that are traceable to a particular product, project, or department, such as raw material in production or labor cost in service industries, but don't characterize a distinct "behaviour" themselves based on increased or decreased production/buffer level activity as seen in variable, fixed or mixed or step costs.
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