Unplanned Change Is Incremental and Results from a Deliberate Decision

question 14

True/False

Unplanned change is incremental and results from a deliberate decision to alter an organization.

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Definitions:

Fixed Costs

Costs that do not vary with the level of production or sales over a certain range, such as rent, salaries, and insurance.

Activity Level

A measure of the volume of production or operations, which can impact costs and profitability within a business.

Cost Driver

A factor that causes the cost of an activity or process to change, used in activity-based costing to allocate costs more accurately.

Variances

The difference between planned or expected financial outcomes and the actual results, often analyzed in budgeting and cost management.