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Hello Sir
I can’t understand the following statement that I came across in Kaplan Exam kit question no 3
For long term variable overhead cost ,the cost driver will be the volume of activity
Would be please explain this statement
Thanks in advanceI do not have the Kaplan Kit (only the BPP Kit) and so I do not know the whole context of the question.
However, by definition, total variable overheads change with the level of production (which is what is meant by volume of activity). More production means more total variable overheads.
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