Solved

The Total Traceable Costs of the Account Billing Activity Centre

Question 64

Multiple Choice

The total traceable costs of the account billing activity centre is $245,000. Cost behaviour analysis indicates that fixed costs are $75,000. Activity analysis indicates that the cost driver for account billing activity is the number of lines printed, and the total lines printed is 2,500,000.
-What is the cost function?


A) Costs = $ 75,000 + $0.098(Lines)
B) Costs = $ 75,000 + $0.068(Lines)
C) Costs = $245,000 + $0.068(Lines)
D) Cannot be determined

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions