Match the Items Below for a Bakery to the Type

question 93

Multiple Choice

Match the items below for a bakery to the type of cost (a-d) . Answers may be used more than once.
-Sprinkles for decoration
(indirect material)

• A)Direct materials
• B)Direct labor
• C)Factory overhead
• D)Nonmanufacturing cost
• Challenging

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Definitions:

Residual Income

The net income an enterprise or project generates above its cost of capital or required rate of return.

Contribution Margin Ratio

A calculation that shows what percentage of sales revenue is available to cover the fixed costs of a business after variable costs have been paid.

Fixed Expenses

Costs that remain constant regardless of any change in a company's activity level, such as lease payments, insurance, and property taxes.

Sales

Represents the total income generated by a company from selling goods or services before any expenses are subtracted.