A ________ Is a Business That Sells Products And/or Services

question 67

Multiple Choice

A ________ is a business that sells products and/or services to consumers for their personal or family use.

• A) manufacturer
• B) wholesaler
• C) retailer
• D) distributor
• E) none of these

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Definitions:

Direct Materials Price Variance

The difference between the actual cost of direct materials used in production and the expected (standard) cost of those materials.

Overhead

The ongoing business expenses not directly attributable to creating a product or service, such as rent, utilities, and administrative costs.

Standard Labor Hours

The set amount of time expected to be used to complete a specific task or manufacture a product under normal conditions.

Direct Materials Quantity Variance

The difference between the actual amount of direct materials used in production and the standard amount expected to be used, valued at the standard cost.