For a Person Who Owns and Operates an Automobile, Insurance

question 189

Multiple Choice

For a person who owns and operates an automobile, insurance premiums are a __________ and maintenance and repairs are a __________.

• A)revenue; cost
• B)fixed cost; fixed cost
• C)variable cost; variable cost
• D)variable cost; fixed cost
• E)fixed cost; variable cost

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Definitions:

Period Cost

Expenses that are not directly tied to the production process and are expensed in the period they are incurred, such as selling, general, and administrative expenses.

Goods Manufactured

The total value or volume of products that have been completed and are ready for sale during a specific accounting period.

Ending Work

Often referred to the ending work in process (WIP) inventory, it represents the value of products that are partially completed at the end of an accounting period.

Process Inventory

Inventory that is currently in various stages of the production process but not yet completed.