Product-Sustaining Costs in Activity-Based Costing Are Similar to ________

question 98

Multiple Choice

Product-sustaining costs in activity-based costing are similar to ________.

• A) mixed costs
• B) variable costs
• C) semi-variable costs
• D) fixed costs

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Definitions:

Net Present Value

The contrast in present value between incomes and expenditures of cash across a given time period.

Discount Factor(s)

A multiplier for determining the present value of future cash flows, reflecting the time value of money.

Salvage Value

The forecasted sale price of an asset at the conclusion of its effective life span.

Annual Cost Savings

The reduction in total expenses achieved during a fiscal year, often as a result of efficiency improvements, renegotiating contracts, or eliminating waste.