What Happens When the Cost-Driver Activity Level Increases Within the Relevant

question 126

Multiple Choice

What happens when the cost-driver activity level increases within the relevant range?

• A)total fixed costs increase
• B)fixed costs per unit decrease
• C)total variable costs decrease
• D)variable costs per unit decrease

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Definitions:

Cost Centre Manager

An individual responsible for managing and controlling the costs within a specific department or unit of a business.

External Sales Price

The price at which goods or services are sold to customers outside of the producing company.

Variable Manufacturing Cost

Costs associated with manufacturing that vary directly with the level of production, such as materials and labor.

Shipping Costs

Expenses associated with the transportation of goods from one location to another.