Choices Are Made Based on

question 100

Multiple Choice

Choices are made based on

• A)scarcity.
• B)opportunity costs.
• C)producers.
• D)consumers.
• E)supply.

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Definitions:

Single Rate

A method used in cost accounting where a single overhead rate is applied to all units produced, regardless of the department in which they were produced or the resources they consumed.

Fixed Costs

Fixed expenditures that are unaffected by production or sales volumes, encompassing rent, salaries, and insurance.

Variable Costs

Expenses that vary directly with the level of production or sales volume, such as raw materials and direct labor costs.

Support Departments

Units within an organization that provide essential services or support to the production or primary activities departments.