As the Total Volume of Activity Changes

question 17

Multiple Choice

As the total volume of activity changes:

• A)the total of variable costs stays the same.
• B)the total of fixed costs changes.
• C)variable costs per unit change.
• D)fixed costs per unit change.

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Definitions:

Capacity Analysis Report

A document that evaluates the production capacity of a business to understand its ability to meet product demand.

Time-Based Activity-Based Costing

An accounting method that tracks costs of activities based on the time spent on them, allowing for more accurate product costing.

Matching Capacity

The process of ensuring that a company's production capacity meets or matches the demand for its products or services, aiming for operational efficiency and customer satisfaction.

Product's Profit

The financial gain made from selling a product after deducting the cost of its production and sale.