If the Cost of an Activity Increases with the Quantity

question 1

Multiple Choice

If the cost of an activity increases with the quantity of items used, it is which of the following?

• A)market-sustaining cost
• B)output unit-level cost
• C)batch-level cost
• D)product-sustaining (service-sustaining)costs
• E)facility-sustaining cost

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Definitions:

Depreciation Expense

Breaking down the cost of a hard asset over its life of utility.

Comprehensive Income

A measure of all changes in equity of an enterprise during a period, except those resulting from investments by and distributions to owners.

Depreciation

An accounting method of allocating the cost of a tangible asset over its useful life, representing how much of an asset's value has been used up over time.

CCA Rate

The rate at which a business can claim Capital Cost Allowance, which is depreciation for tax purposes.