A Formula Expresses

question 15

Multiple Choice

A formula expresses:

• A) known quantities
• B) a percentage less than 100
• C) a portion relationship greater than 100
• D) a relationship among quantities

---

Definitions:

Fixed Costs

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

Variable Costs

Expenses that change in proportion to the amount of production or business operations.

Cost Estimation Methods

Techniques used to predict the expenses likely to be incurred in the manufacturing of a product or the execution of a project.

Cost Equation

An equation used to estimate costs, typically in the form of fixed costs plus variable costs times the number of units.