Expenses That Change on a Per-Unit Basis When Production Volume

question 37

Multiple Choice

Expenses that change on a per-unit basis when production volume increases or decreases are known as ________.

• A)variable costs
• B)manufacturing overhead costs
• C)marketing and sales expenses
• D)indirect costs
• E)operating costs

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Definitions:

Annual Revenue

The total income generated by a business over a one-year period from its normal business operations.

Revenue

The total amount of money received by a company for goods sold or services provided during a certain period of time.

Non-food Items

Refers to products not intended for human consumption, such as clothing, electronics, and household goods.

Warehouse Store

A retail store, typically of large size, offering a wide variety of goods stored in bulk and sold at lower prices, usually requiring membership for shopping.