Costs That Change Abruptly at Intervals of Activity Because the Resources

question 105

Multiple Choice

Costs that change abruptly at intervals of activity because the resources and their costs come in indivisible chunks are called:

• A) step costs
• B) mixed costs
• C) variable costs
• D) fixed costs

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Definitions:

Total Cost Assigned

The complete allocation of costs, both direct and indirect, to a specific product, service, or department.

Time-Driven Activity-Based Costing

A financial assessment technique that calculates costs based on actual activities and the duration it takes to complete them, giving accuracy in assigning costs to products.

Tech Support Department

A division of a company providing technical support and services to customers or internal users regarding technological products or services.

Unused Capacity

The available production or service ability that goes unused or is not utilized to its full potential.