General Business ACC212 Chapter Notes - Chapter 2: Behaviorism, Variable Cost, Fixed Cost
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The activity level selected is called the activity (or volume) index, identifies the activity that causes changes in the behaviour, allows costs to be classified according to their response to of costs changes in activity as: Variable costs the activity level: costs that vary in total directly and proportionately with changes in. If the activity level increases 10%, total variable costs increase 10%; : if 2,000 tablets are made, the total cost of the cameras is, if 10,000 tablets are made, the total cost of the cameras is. Distinguish between variable and fixed costs: variable costs are costs that vary in total directly and proportionately with changes in the activity level. These costs remain the same per unit at every level of activity: fixed costs are costs that remain the same in total within the relevant range regardless of changes in the activity level.