An Example of a Cost That Is Noncontrollable in the Short

question 24

Multiple Choice

An example of a cost that is noncontrollable in the short run is:

• A)direct labor.
• B)property taxes.
• C)raw materials.
• D)supervisors' salaries.

---

Definitions:

Net Sales

The total revenue a company earns after deducting returns, allowances for damaged or missing goods, and any discounts allowed.

Nonoperating Income

Income derived from activities not related to a company's core business operations, such as investment income or gains from the sale of assets.

Operating Expenses

Costs related to the day-to-day operations of a business, such as rent, utilities, and payroll.

Disclosure Notes

These are explanatory notes included with financial statements to provide additional detail and context for items presented in the financial statements.