________ Consist of the Sum of the Fixed and Variable

question 46

Multiple Choice

________ consist of the sum of the fixed and variable costs for any given level of production.

• A) Total costs
• B) Average costs
• C) Opportunity costs
• D) Learning costs
• E) Target costs

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Definitions:

Master Budget

A comprehensive financial planning document that includes all of a company’s budgets, projecting its financial activities over a specific period.

Raw Materials

The basic materials from which products are made, prior to being processed or manufactured into final goods.

Finished Goods Inventory

The stock of completed products ready for sale, held at the end of an accounting period.

Direct Labor

The wages and benefits of employees who are directly involved in manufacturing a product or delivering a service.