_____________ Costs Are a Function of Quantity Sold, Not Time

question 46

Multiple Choice

_____________ costs are a function of quantity sold, not time.

• A) fixed
• B) depreciation
• C) operating
• D) variable

---

Definitions:

Activity Cost Pool

A “bucket” in which costs are accumulated that relate to a single activity measure in an activity-based costing system.

Measure Of Activity

A metric used to gauge the level of a specific operation or process over a given time period.

Activity Rate

A rate used to allocate indirect costs to products or services, based on a specific activity or driver.

Product Design

The process of creating, defining, and managing the specifications of a physical product or its system to solve a particular problem.