Which of the Following Is the Best Example of a Nondurable

question 60

Multiple Choice

Which of the following is the best example of a nondurable good?

• A)gasoline
• B)health care
• C)automobile
• D)hair cut

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Definitions:

Contribution Margin

The difference between sales revenue and variable costs, indicating how much revenue contributes to fixed costs and profits.

Fixed Costs

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

Incremental Basis

A method of calculating changes in costs or benefits that result from small variations in the quantity of output or input.

Differential Basis

A method of calculating or analyzing the difference in costs or revenues between two alternative actions.