Select the True Statement from the Choices Below

question 82

Multiple Choice

Select the true statement from the choices below.

• A)Inventory stores and warehousing are both concerned with raw materials.
• B)Neither inventory stores nor warehousing are concerned with raw materials.
• C)Inventory stores are concerned with raw materials and warehousing is concerned with finished goods.
• D)Inventory stores are concerned with finished goods and warehousing is concerned with raw materials.

---

Definitions:

Variable Costs

Charges that shift in alignment with the volume of production or service tasks.

Operating Income

Earnings before interest and taxes (EBIT), a measure of a company's profit generated from its core operations excluding the effects of financing and taxes.

Operating Leverage

A measure of how revenue growth translates into growth in operating income, due to fixed costs within a company's operating structure.

Variable Costs

Charges that shift in alignment with the volume of business activity.