Each Different Item of Merchandise in a Retail Store Is

question 2

Multiple Choice

Each different item of merchandise in a retail store is called a/an:

• A) consumer offering
• B) store counted item (SCI)
• C) stored and keyed unit (SKU)
• D) economic unit
• E) stock keeping unit (SKU)

---

Definitions:

Variable Costs

Costs that change in proportion to the good or service that a business produces, such as raw materials and direct labor.

Fixed Costs

Costs that do not vary with the level of production or sales volume, such as rent, salaries, and insurance premiums.

Mixed Costs

Expenses that have both fixed and variable components, changing in total with the level of activity but not in proportion.

Sunk Costs

Costs that have already been incurred and cannot be recovered, which should not affect future business decisions.