Instructions: Identify the Following Terms

question 97

Short Answer

Instructions: Identify the following terms.
"East for Essence, West for Practical Use"

---

Definitions:

Fixed Costs

Overheads that stay the same no matter the quantity of goods produced or sold, like rent, salaries, and insurance.

Activity Level

A measure of the volume of work or production capability, often used in cost accounting to determine appropriate cost allocations.

Unit Variable Cost

The cost directly associated with producing each unit of output, varying with the level of production or sales volume.

Activity Level

The volume of production or the degree of services provided by a business, which can impact the behavior of costs and is critical in budgeting and planning.