During a Recent Shopping Trip to the Local Zellers Store

question 1

Multiple Choice

During a recent shopping trip to the local Zellers store, Pat noticed several things. First, she noticed that the store offered a tremendous variety of products, including Toys, pet foods, clothing for men, women, and children, health and beauty aids, small household appliances, automotive products, and more. Further, Pat noticed Zellers Offered an array of different products within each product group. Each product group at Zellers is an example of a _________; all of the product groups together constitute Zeller's __________.

• A)product mix; product unit
• B)product line; product mix
• C)product tangibility; product unit
• D)product unit; product tangibility

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Definitions:

Direct Materials

Raw materials that can be directly traced to the manufacturing of a product and are a part of the final product.

Variable Costs

Variable costs are expenses that change in proportion to the activity of a business, such as costs for raw materials or production.

Cost-volume-profit Analysis

A financial accounting technique that calculates how variations in costs and sales volume impact a firm's profitability.

Fixed Costs

Fixed costs are expenses that do not change with the level of production or sales, such as rent, salaries, and insurance premiums.