Cost behavior refers to:

A$)$ how costs react to a change in the level of activity

B$)$ whether a cost is incurred in a manufacturing, merchandising, or service company

C$)$ classifying costs as either inventoriable or period costs

D$)$ whether a particular expense has been ethically incurred

E$)$ all of the above

In multiproduct situations when sales mix shifts toward the product with the lowest contribution margin, the

breakeven quantity will decrease.

A$)$ True

B$)$ False

C$)$ Not enough information to answer