In A(n) _____ Cost Structure, the Primary Costs of a Business

question 50

Multiple Choice

In a(n) _____ cost structure, the primary costs of a business come from customer acquisition and maintaining relationships with customers.

• A) marketing
• B) retail space
• C) support center
• D) direct
• E) inventory

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Definitions:

Activity Rates

Charges or rates applied based on specific activities conducted, often used in activity-based costing to allocate indirect costs.

Activity Cost Pools

Aggregations of all the costs associated with specific activities used in activity-based costing.

Departmental Overhead Rates

Rates calculated to allocate overhead costs to specific departments based on their activities or output.

Machine Hours

A measure of production time used in manufacturing, indicating the total hours a machine is operated.