For an Activity Base to Be Useful in Cost Behavior

question 182

Multiple Choice

For an activity base to be useful in cost behavior analysis

• A) the activity should always be stated in dollars.
• B) there should be a correlation between changes in the level of activity and changes in costs.
• C) the activity should always be stated in terms of units.
• D) the activity level should be constant over a period of time.

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Definitions:

Communication Network

The system or pattern of ways in which information flows within an organization or group, including the tools, processes, and interactions that facilitate communication.

Team Members

Individuals who are part of a group working together towards a common goal.

Tasks

Specific activities or assignments that need to be completed by individuals or teams.

Task Activity

Activities that contribute directly towards achieving a specific task or goal in an organizational setting.