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Suppose A-Plus Linens sent the following notice to John C.Lincoln Hospital: "On your next call for bids,call us.We'll give you a $5 discount for every 100 pounds of linen we clean for you." The notice sent by A-Plus:
Variable Cost
Costs that fluctuate directly with changes in production or sales volume.
Cost Driver
Any activity or factor that can cause a change in the cost of a product or service, used in activity-based costing to allocate costs accurately.
Support Department
Departments that do not directly participate in the primary activities of a business but provide essential services or support to those that do.
Payroll Checks
Payroll checks are written by an employer to pay employees for services rendered during a specific time period.
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