23) A fixed cost is fixed only in relation to a given wide range of total activity or volume andonly for a given time span, usually a particular budget period.
Diff: 2Objective: 3AACSB: Application of knowledge24) A cost driveris a variable, such as the level of activity or volume that causally affects costs over a given time span.
Diff: 1Objective: 3AACSB: Analytical thinking25) Fixed cost per unit falls with an increase in production volume.
Diff: 2Objective: 3AACSB: Analytical thinking26) Variable costs per unit vary with the level of production or sales volume.
Diff: 2Objective: 3AACSB: Analytical thinking27) Wood used to manufacture chairs is considered a direct variable cost when the cost object is the chair.
Diff: 1Objective: 3AACSB: Analytical thinking28) Cost drivers casually affect total costs of a cost object over a given time span.
Diff: 1Objective: 3AACSB: Analytical thinking29) A fixed cost remains unchanged in total for a given time period, despite wide changes in the related level of total activity or volume of output produced.
Diff: 1Objective: 3AACSB: Analytical thinking