Michael Asks You About Why Some Drugs Are Over-The-Counter and Some

question 6

Multiple Choice

Michael asks you about why some drugs are over-the-counter and some are prescription. You explain that in order for a drug to be approved for over-the-counter use the drug must:

• A) Be safe and labeled for appropriate use
• B) Have a low potential for abuse or misuse
• C) Be taken for a condition the patient can reliably self-diagnose
• D) All of the above

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Definitions:

Fixed Costs

Fixed costs are business expenses that remain constant regardless of the level of production or sales, such as rent, salaries, or insurance premiums.

Sales Volumes

The quantity or number of products sold or services rendered in a particular period of time.

Variable Overhead Cost Variance

The difference between the actual variable overhead costs incurred and the expected (or standard) costs, based on the actual level of activity.

Fixed Overhead Cost Variance

The difference between the actual fixed overhead costs incurred and the expected (or budgeted) fixed overhead costs.