The Total Traceable Costs of the Account Billing Activity Centre

question 21

Multiple Choice

The total traceable costs of the account billing activity centre is $245,000. Cost behaviour analysis indicates that fixed costs are $75,000. Activity analysis indicates that the cost driver for account billing activity is the number of lines printed, and the total lines printed is 2,500,000.
-Flexible budgets help to measure

• A) differences between projected and actual activity levels.
• B) the efficiency of operations at the actual activity level.
• C) the amount by which standard and expected prices differ.
• D) the reasons why projected activity levels were not attained.

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Definitions:

Informational

Intended to provide information or knowledge about a topic, without necessarily persuading or entertaining the audience.

Analytical

Pertaining to or using analysis or logical reasoning to address a problem or dissect a concept.

Facts

Statements that can be proven true or false, based on evidence and objective reality.

Internal Reports

Documents generated within an organization, intended for review by members of the organization, often used for decision-making or informational purposes.