past question from acca kaplan exam kit

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August 17, 2020 at 9:51 am #580875
souamesc
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For long-term variable overhead costs, the cost driver will be the volume of activity.

Could you kindly explain why this is correct?

Thank you!
August 17, 2020 at 4:28 pm #580924
John Moffat
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Because by definition variable overheads will vary with the level of activity. The more they produce then the more the variable overheads, and vice versa.
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