Which of the Four Types of Cost Drivers-Activity-Based, Volume-Based, Structural

question 47

Multiple Choice

Which of the four types of cost drivers-activity-based, volume-based, structural and executional-are often best related to linear cost estimation methods?

• A) Activity-based only.
• B) Activity-based and volume-based.
• C) Structural and volume-based.
• D) Executional and volume-based.
• E) Structural and executional.

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Definitions:

Tea Industry

The sector of the economy devoted to the production, processing, and marketing of tea.

Output Expansion

Output expansion is the increase in the quantity of goods or services produced by an economy or a firm, often as a result of increased demand or improved production efficiency.

Unchanged Resource Prices

A situation where the prices of inputs required for production remain constant over a certain period.

Industry Type

A classification that groups companies based on similar business activities, products, or services.