The Total Traceable Costs of the Account Billing Activity Centre

question 98

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.
-Which statement would NOT be a possible reason for a variance between a flexible budget and actual results?

• A) Material prices were different than expected.
• B) Labour prices were different than expected.
• C) The actual volume of activity was different than expected.
• D) The amount of labour used per unit of output was different than expected.

---

Definitions:

DRL Schedule

A type of reinforcement schedule where a response is only reinforced if it occurs after a specified amount of time has passed since the last reinforced response.

Reinforcement

In behaviorism, a stimulus or event that follows a behavior and increases the likelihood of that behavior's recurrence.

Variable-ratio

A schedule of reinforcement where a response is reinforced after an unpredictable number of responses, making it highly resistant to extinction.

Reinforcement

An operational technique used in behavior analysis to increase the frequency of a desired behavior by introducing a motivating item after the behavior is exhibited.