The Total Traceable Costs of the Account Billing Activity Centre

question 100

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.
-What would be the total flexible budget if the number of lines increased to 2,600,000?

• A) $176,800
• B) $245,000
• C) $251,800
• D) Cannot be determined

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Definitions:

Investment Needs

The amount of capital required to fund a project, purchase assets, or support operations within a business.

Regular Cash Dividend

A payment made by a firm to its shareholders from its profits in the form of cash.

Cyclical Dividend Policy

A dividend payment strategy by companies that varies depending on the economic cycle, with higher payouts during economic prosperity and lower or no dividends during downturns.

Economic Growth

An increase in the production and consumption of goods and services, indicating a country's economic health.