When Making Estimates, You Should Round

question 56

Multiple Choice

When making estimates, you should round:

• A) the numbers of the problem before calculations are made
• B) only when using whole numbers
• C) only when using decimals
• D) only the result of the final calculation

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Definitions:

Level Of Activity

A measure of the amount of output or work done by a business or manufacturing process.

Cost Behavior

The way in which a cost reacts to changes in the level of activity.

Mixed Cost

A cost that contains both variable and fixed cost elements.

Sales In Units

The total number of individual items or units sold by a company within a specific period.