A Reason for Keeping a Constant Denominator Activity Level Is

question 28

True/False

A reason for keeping a constant denominator activity level is to maintain stability in the amount of overhead cost that is applied to each unit of product manufactured over the period.

---

Definitions:

Price Change

An alteration in the cost to purchasers of goods and services over time or in response to supply and demand conditions.

Total Utility

The total satisfaction a consumer gets from consuming a certain quantity of goods or services.

Demand Curves

A graphical representation showing the relationship between the price of a good or service and the quantity demanded by consumers, typically downward sloping.

Purchasing Power

The quantity of goods or services that a person or entity can buy with a given amount of currency.