Examlex
Your college has contracted with a construction company to build a new bookstore; in doing so the contractor will use heavy machinery and equipment.How are these items classified?
Activity Level
The volume of production or the degree of service activity which directly affects the amount of various costs incurred.
Fixed Cost
An expense that does not change with the level of production or sales over a short period.
Sales Commissions
The payment given to sales employees based on the amount of sales they generate, typically a percentage of the sale price.
Sales Volume
The amount of goods or services a company sells over a certain time frame.
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