Total Fixed Costs Remain Constant as the Level of Activity

question 23

True/False

Total fixed costs remain constant as the level of activity changes within the relevant range.

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Definitions:

Currently Attainable Standard

This refers to a standard or benchmark that can be achieved under current operating conditions with reasonable efficiency.

Unfavorable Cost Variance

A variance that occurs when the actual cost exceeds the standard cost.

Favorable Cost Variance

A variance that occurs when the actual cost is less than standard cost.

Revenue Price Variance

The difference between the actual revenue received from selling a product and the expected revenue, based on standard pricing.