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:

Holder In Due Course

A legal term for a person who has acquired a negotiable instrument in good faith and for value, and thus is protected against certain defenses and claims that could be raised against the original payee.

Payee

The party in a transaction who receives the payment.

Properly Delivered

Pertains to goods or documents being conveyed to the correct recipient in good condition and within the agreed timeframe.

Bearer Paper

A negotiable instrument that is payable to whoever holds the document; the physical possession of the document is the only requirement for entitlement to payment.