An Increase in Total Variable Cost Usually Indicates _____

question 85

Multiple Choice

An increase in total variable cost usually indicates _____.

• A)the cost-driver activity level is decreasing
• B)the cost-driver activity level is increasing
• C)variable costs per unit is decreasing
• D)variable costs per unit is increasing

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Definitions:

Resale Value

The estimated amount for which an asset can be sold at the end of its useful life.

Office Furniture

Furniture and related items used in offices, such as desks, chairs, and file cabinets.

Straight-Line Method

A depreciation method that allocates an equal amount of depreciation each year over the useful life of the asset.

Resale Value

The likely selling price of a good or asset if sold at a future date, considering depreciation or appreciation.