COST ACCOUNTING
ACTIVITY BASED MANAGEMENT
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Unit-level.
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Product-level.
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Facility-level.
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Batch-level.
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Detailed explanation-1: -Fixed overheads are costs that remain constant every month and do not change with changes in business activity levels. Examples of fixed overheads include salaries, rent, property taxes, depreciation of assets, and government licenses.
Detailed explanation-2: -The different examples of fixed costs can be rent, salaries, and property taxes.
Detailed explanation-3: -Facility level costs are the costs which are related to company’s activities of maintaining its general operations. Examples are the costs to provide on electricity, cleaning, etc, .
Detailed explanation-4: -Fixed expenses are those that do not change regardless of property occupancy. For example, property taxes are a fixed expense. Variable expenses are those that do change based on property occupancy. For example, property management fees are based on a property’s income so they change based on occupancy.
Detailed explanation-5: -Examples of fixed costs are rent and lease costs, salaries, utility bills, insurance, and loan repayments.