In the Hierarchy of Classification, a Class Is Higher in Rank

question 35

True/False

In the hierarchy of classification, a Class is higher in rank than an Order.

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Definitions:

Cost Behavior

The way in which costs change in relation to variations in an organization’s activity level.

Variable Costs

Costs that change in proportion to the level of production or sales, such as raw materials and direct labor.

Activity Level

A measurement of the volume of production or the quantity of services provided.

Activity Bases

Measures that assign costs to cost objects based on their use of activities; used in activity-based costing.