Cost Behaviour Is

question 104

Multiple Choice

Cost behaviour is:

• A) another word for cost object.
• B) irrelevant for service organisations.
• C) the variation in costs relative to the variation in activities.
• D) an old fashioned term for activity cost analysis.

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Definitions:

Rate of Return

A rise or fall in an investment's value during a specified time, shown as a percentage of the cost of the investment.

Trust

A legal arrangement in which one party holds property or assets for the benefit of another, guided by the terms set in the trust agreement.

Interest Earnings

Income received from investments in interest-bearing financial instruments, such as savings accounts, CDs, or bonds.

Compounded Semi-Annually

Interest calculation method where interest is added to the principal sum twice a year, leading to interest earning interest over time.