A Factor Where the Change in the Factor Causes a Change

question 104

Multiple Choice

A factor where the change in the factor causes a change in the speed with which an activity is undertaken is referred to as

• A)a bottleneck.
• B)value added time.
• C)opportunity cost.
• D)cycle time.
• E)a time driver.

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Definitions:

Cost Volume Profit Analysis

A financial analysis method used to determine how changes in costs and volume affect a company's operating income and net income.

Cost Behaviours

The way in which different costs change in response to variations in the level of business activity or production volume.

Activity Levels

Refers to the quantity of work performed or production completed in a business within a specific period.

Target Sales Volume

The specific quantity of products a company aims to sell within a certain period to achieve its sales objectives and ensure profitability.