The Cost Driver of a Variable Cost Is the Level

question 64

Multiple Choice

The cost driver of a variable cost is the level of activity or volume for which change causes proportionate changes in the ________ cost.

• A)variable
• B)fixed
• C)mixed
• D)allocated

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Definitions:

Action Potential

A brief electrical charge that travels down a neuron, initiating neurotransmission and facilitating neural communication.

All Or None

A principle that states a neuron either fires with full strength or not at all, depending on whether the stimulus reaches a certain threshold.

Principle

A basic principle or assertion that acts as the cornerstone for a belief system or behavioral guide or supports a sequence of logical thinking.

Fires

Rapid oxidation processes that result in the emission of heat and light in varying intensities; often considered a hazard when uncontrolled.