The Total Traceable Costs of the Account Billing Activity Centre

question 93

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.
-Who is best able to explain the reasons for flexible-budget variances?

• A) The company president
• B) A salesperson
• C) A manufacturing department foreperson
• D) A machine operator

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Definitions:

Income Taxes

Income taxes are government levies imposed on individuals and entities' income, varying based on the taxable income amount.

Trend Percent

Trend percent analysis involves comparing financial statements line items over multiple periods to identify patterns or trends in a company's performance over time.

Analysis Period

A specific duration of time selected for reviewing and examining financial or operational data to make assessments or decisions.

Base Period

A specific time period used as a reference point to measure changes in economic or financial indices over time.