As a Firm Gets More Experience,it Can Often Work with Fewer

question 1

Multiple Choice

As a firm gets more experience,it can often work with fewer mistakes and greater efficiencies,thereby lowering costs.This leads to the cost benefit of _____.

• A) personalization
• B) scope savings
• C) learning
• D) altruism

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Definitions:

Fixed Component

The portion of total costs that remains constant regardless of the level of activity or output.

Variable Overhead Rate

This refers to the rate at which indirect, variable costs accumulate over a given period, often linked to production or activity levels.

Efficiency Variance

A measure used in cost accounting to assess the difference between actual and expected usage of resources, often related to time or cost of labor.

Budget Variance

The difference between the budgeted or planned amount and the actual amount spent or received.