NAICS Provides Common Industry Definitions to Facilitate the Measurement of Economic

question 147

Multiple Choice

NAICS provides common industry definitions to facilitate the measurement of economic activity for the member countries of the

• A)European Union (EU).
• B)United Nations (UN).
• C)North American Free Trade Agreement (NAFTA).
• D)North Atlantic Treaty Organization (NATO).
• E)World Trade Organization (WTO).

---

Definitions:

Fixed Costs

Costs such as rent, salaries, and insurance are invariant, unaffected by the quantity of production or sales.

Cost Volume Profit Analysis

A financial analysis method used to determine how changes in costs and volume affect a company's operating income and net income.

Cost Behaviours

The way in which different costs change in response to variations in the level of business activity or production volume.

Activity Levels

Refers to the quantity of work performed or production completed in a business within a specific period.