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Correct: Any change in cost is only due to change in activity levels, Costs are assumed to be either fixed or variable, or at least separable into theseelements, Total variable costs change in direct proportion to volume, Total fixed costs remain fixed throughout the activity range, Efficiency and productivity do not change with volume, The variable cost per unit is constant, If a cost is direct it will have a variable cost behaviour, Incorrect: If a cost is indirect it will have a variable cost behaviour, Efficiency and productivity change with volume, Any change in cost is not due to change inactivity levels, Total variable costs do not change in direct proportion to volume, Total fixed costs do not remain fixed throughout the activity range,

COST BEHAVIOUR ASSUMPTIONS - Management Accounting - Elements of Costing - AAT 2 & 3

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