Assume That for Local Telephone Calls,one Pays the Same Rate

question 32

Multiple Choice

Assume that for local telephone calls,one pays the same rate each month. However,for long distance telephone phone calls,the costs depend on how many long distance calls were made,what time of day they were made,and the length of each call. What type of costs are the long distance calls to the consumer?

• A) Fixed.
• B) Variable.
• C) Standard.
• D) Hidden.
• E) Dependent.

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Definitions:

Direct Materials

Basic substances used in the direct creation of particular products or services.

Lubricants

Substances introduced between surfaces to reduce friction and wear, often essential for the smooth operation of machinery.

Direct Cost

Expenditures that can be directly associated with manufacturing certain goods or services, like labor and raw materials.

Manufacturing Equipment

Tools and machinery used in the process of producing goods from raw materials.