The First Unit Took 10 Hours and the Third Unit

question 111

Multiple Choice

The first unit took 10 hours and the third unit took 5.7 hours. What is the improvement rate?

• A) 70%
• B) 30%
• C) 50%
• D) 90%
• E) 10%

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Definitions:

Variable Costs

Expenses that fluctuate in proportion to activity levels within a business.

Per-unit Basis

A calculation or measurement that is made for each individual unit.

Level of Activity

Level of activity refers to the volume of production or the rate at which a company operates, often influencing costs and operational strategy.

Cost Behavior

Cost behavior analyzes how different costs change or remain stable in relation to the level of production or business activity.