Unplanned Costs Incurred When Steps Are Taken to Speed Up

question 3

Multiple Choice

Unplanned costs incurred when steps are taken to speed up project's completion are called:

• A) expedited costs.
• B) accelerated costs.
• C) pass-through costs.
• D) normal costs.

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Definitions:

Contribution Margin

The amount by which the unit selling price exceeds the unit variable cost.

Fixed Costs

Expenses that do not change in proportion to the activity of a business, such as rent, salaries, and insurance premiums.

Variable Cost

Costs that change in proportion to the level of activity or production volume, such as materials and labor.

Fixed Costs

Costs that remain constant regardless of how much is produced or sold, including expenses like rent, salaries, and insurance.