In explaining cost behaviour we refer to the 'level of activity' as a cost driver. What do

Question:

In explaining cost behaviour we refer to the 'level of activity' as a cost driver. What do we mean by 'level of activity' and why is it a cost driver? What role do cost drivers play in identifying cost behaviour patterns?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Management Accounting

ISBN: 9781760421144

7th Edition

Authors: Kim Langfield Smith, Helen Thorne, David Alan Smith, Ronald W. Hilton

See More Books

Question Posted: Nov 01, 2017 05:31 AM

See More Questions

What is meant by a CUSIP number, and why is it important?
What is corporate-level strategy and why is it important?
What is level mixed-model sequencing and why is it important?
The 10-year Coupon Bond has a face value of $1,000, the annual coupon rate is 5 percent (out of its face value), the yield to maturity is 10 percent. (2.a) show me the cash flows of this coupon bond,...
Explain which product is formed when each of these alkyl chlorides reacts with sodium ethoxide in ethanol. Discuss.
Go to www.csb.gov and watch a video assigned by your instructor. For the substance involved, look up the LFL. Use Raoults law to estimate the flash point temperature and compare it with a literature...
A train is comprised of an engine car of inertia $M$, and 3 more cars of inertias $m_{1}, m_{2}$, and $m_{3}$, respectively. The acceleration of the train is $a$. Friction can be ignored. (a)...
On December 31, 2013, Paxson Company had 1,300,000 shares of $5 par common stock issued and outstanding. At December 31, 2013, stockholders equity had the amounts listed here. Common...
1.Which of the following is an advantage of implementing just-in-time inventory management? Pick 1 option The frequency of raw materials deliveries is reduced Monthly finance costs incurred in...
You, CPA, work at Spring & Bounce Chartered Professional Accountants (S&B) as a management consultant. S&B is a medium-sized CPA firm. It is December 10, 2018, and the partner has called...
Describe some of the problems that are often encountered when collecting data for cost estimation.
Friendly Skies Travel is a travel agency that has branches in many major shopping centres. A typical branch employs five full-time staff: a manager and four customer service staff. Casual customer...
The outer and inner wheels are spun. Assuming that the wheels are independent and the outcomes are equally likely, determine the probability of obtaining. Numbers greater than 5 on both wheels. 3 2 4...
An article in the Wall Street Journal in 2012 noted that interest rates in Australia were higher than in the United States on comparable bonds. The article quoted a specialist on foreign exchange at...
According to an article in the New York Times in early 2012, Bond yields have risen for countries like Brazil, Turkey and India, with investors preferring the safety of the dollar or yen. According...
What is the yield to maturity on a Treasury bill that matures one year from now, has a price of $1,010, and has a face value of $1,000? If the consumer price index is expected to decline during the...
A student says: The interest rate on the one-year Treasury bill is currently 0.29%, while the interest rate on the 30-year Treasury bond is currently 3.10%. Why are any investors buying the Treasury...
An article in the Wall Street Journal in 2012 noted: Turkeys relatively strong economy and its attractive yields have kept emerging-market investors in the country. a. What is an emerging market? b....
Briefly explain for what kind of experiments we use the classical approach to calculate probabilities of events and for what kind of experiments we use the relative frequency approach.
Danielle has an insurance policy with a premium of $75 per month. In September she is in an accident and receives a bill worth $2990 for the repair of her own property. Her deductible is $250 and her...
Variance analysis, materials and labor Pharout Company uses a standard cost system. Job 822 is for the manufacturing of 500 units of the product P521. The company's standards for one unit of product...
Variance analysis, material and labor Each unit of job Y703 has standard requirements of 5 pounds of raw material at a price of $100 per pound and 0.5 hour of direct labor at $12 per hour. To produce...
Assembly of product P13 requires one unit of component X, two units of component Y, and three units of component Z. Job J372 produced 220 units of P13. The following information pertains to material...
Determine the key elements in appraising various types of quantitative research designs, which might be useful for your own nursing practice. 4. Illustrate key concepts relevant to quantitative...
Is the big-box store practicing illegal price competition? Explain your answer. If it is, what federal act is it violating? If the big-box store is not practicing illegal price competition, how can...
1.) Consider the baggage check-in of a small airlineCheck in data indicates that from 9 a.m to 10 a.m, 255 passenger check inMoro ever, based on counting the numbers of passengers waiting in line for...

In explaining cost behaviour we refer to the 'level of activity' as a cost driver. What do

Question:

Step by Step Answer:

A cost driver is an activity or factor that causes costs ...View the full answer

Management Accounting

Students also viewed these Advanced Accounting questions