cost behavior
nounUK /kɒst bɪˈheɪvjə/
US /kɔst bɪˈheɪvjər/
Cost behavior is how a cost changes when a business makes or sells more or less stuff.
The manager studied cost behavior to see which expenses would rise if the factory made more toys.
OTHER MEANINGS
2. The way total costs react to changes in activity level, such as output or sales volume.
Analysts classify cost behavior as fixed, variable, or mixed depending on how it moves with production.
3. The study of how expenses shift between staying the same and changing as a company grows.
Understanding cost behavior helps a small shop decide whether to hire another worker.
4. The relationship between a cost and the amount of business activity that drives it.
Rent shows a fixed cost behavior, while packaging materials show a variable one.