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What Is an Activity Base,and How Does the Activity Base

question 52

Essay

What is an activity base,and how does the activity base relate to a variable cost?


Definitions:

Output

The total amount of goods or services produced by a company, industry, or economic system.

Total Variable Costs

These are expenses that change in proportion to the activity of a business, such as costs for raw materials or production.

Output

The quantity of goods or services produced within a given period by a firm, industry, or economy.

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