Choose the Word or Phrase in [ ] Which Will

question 63

Short Answer

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-Four categories,accounting for 75% of consumer spending,include [utilities | clothing].

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Definitions:

Product Costs

Costs that are considered to be directly associated with the production of goods or services, including direct materials, direct labor, and manufacturing overhead.

Fixed Production Costs

Costs that do not vary with the level of production, such as rent for manufacturing facilities.

Variable Selling Expenses

Costs that fluctuate with sales volume, such as commissions and shipping charges, directly associated with the selling of products.

Fixed Production Costs

Costs that do not change with the level of production output, such as rent, salaries, and equipment depreciation.