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:

Primary Market

The financial market where new securities are issued and sold for the first time to investors.

Marketing Efforts

The actions companies take to promote and sell their products or services in the market.

Primary Segment

The main target group of consumers that a business focuses its marketing and sales efforts on.

Target Sector

A specific segment of the market that a company aims to serve or sell its products and services to.