As the Cost-Driver Activity Level Increases Within the Relevant Range

question 146

Multiple Choice

As the cost-driver activity level increases within the relevant range _____.

• A)total fixed costs remain unchanged
• B)fixed costs per unit increases
• C)total variable costs decrease
• D)variable costs per unit increases

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Definitions:

Straight Line Amortization

A technique for uniformly distributing the expense of an intangible asset across its lifespan.

Voting Shares

Securities affording the owner the ability to vote on important company decisions, including who gets elected to the board.

IAS 36

An International Accounting Standard that prescribes the procedures for accounting for impairments of assets.

Amortized

The gradual reduction of a debt or capital cost over a period, especially through regular payments covering interest and part of the principal.