9 COST BEHAVIOR REFERS TO HOW A COST WILL FORMANCE CAN BE BROKEN DOW...

2-9 Cost behavior refers to how a cost will

formance can be broken down into prevention

react or respond to changes in the level of activ-

costs, appraisal costs, internal failure costs, and

ity.

external failure costs. Prevention costs are in-

curred in an effort to keep defects from occur-