________ Tend to Reduce ________,But They Rarely Affect the Causes

question 57

Short Answer

________ tend to reduce ________,but they rarely affect the causes.

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Definitions:

Activity Level

In cost accounting, the volume of output or production that impacts the cost of a specific activity.

Direct Materials

Raw materials that are directly traceable to the manufacturing of a specific product and constitute a significant part of the product’s cost.

Direct Labor

The wages and expenses directly associated with the manufacturing of goods or provision of services, including the work of employees on the production line.

Variable Costs

Costs that vary in direct proportion to changes in levels of production or sales, such as raw materials and labor expenses.