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.

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Definitions:

Implicit Assumptions

The unstated or underlying beliefs and conditions presumed to be true without direct evidence in an argument or hypothesis.

Explanation

An explanation is the process of making something clear or understandable, often by elaborating on how and why something occurs or is the way it is.

Strength

The degree to which the premises of an inductive argument support the conclusion.

Explanandum

The phenomenon or event that is explained by a scientific theory or hypothesis.