Answers Scoring 0. The manner in which a cost changes as a related activity changes is known as cost behavior 0. 1. The activity that is thought to cause a cost to be incurred is called an 1. 2. The range of activity over which the changes in a cost are of interest to management is referred to as the 2. 3. In terms of cost behavior, direct materials and labor costs are generally classified as 3. 4. Straight-line depreciation of factory equipment, insurance on factory plant, and factory supervisor salaries are examples of (variable costs, fixed costs