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:

Differential Aptitude Test

A standardized test designed to measure specific abilities and predict academic and career success.

Stanines

A method of scaling test scores on a nine-point standard scale with a median of five and a standard deviation of approximately two.

Audiation

The mental process of hearing or comprehending music in the mind without the actual physical presence of sound.

Musical Aptitude

The inherent ability or potential to learn music and musical concepts such as pitch and rhythm easily.