A Cost That Remains Unchanged in Total as the Activity

question 28

Multiple Choice

A cost that remains unchanged in total as the activity level (or cost driver) changes is called a:

• A) fixed cost.
• B) variable cost.
• C) step-fixed cost.
• D) step-variable cost.

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Definitions:

Adult

An individual who has reached the age of maturity as defined by law, typically 18 years old in many countries, which qualifies them for full legal rights and responsibilities.

Minor

A person under the age of majority, legally recognized as not having the full legal capacity and rights of an adult.

Disaffirm

The legal right of a party to renounce or reject a contract, especially used in cases where one party is a minor or was deceived.

Legally Obligated

It means being bound or required by law to do something.