How Does Activity-Based Management Treats Fixed Costs

question 19

Multiple Choice

How does activity-based management treats fixed costs?

• A)As costs which vary directly with volume.
• B)As costs which cannot be controlled over the long-run.
• C)As costs which may vary for reasons other than volume.
• D)As sunk costs which have no future economic benefit.

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Definitions:

Statistically Significant

A situation where the observed effect or difference in a study is likely not due to chance, indicating a high probability that it reflects true differences or associations.

Empirical

Based on observation or experience rather than theory or pure logic.

Type II Error

In research, the mistake of thinking that one variable does not have an effect on or relationship with another, when really it does.

Empirical Method

A way of gaining knowledge by means of direct and indirect observation or experience.