A Factory Is Operating at Less Than 100% Capacity

question 15

Multiple Choice

A factory is operating at less than 100% capacity.Potential additional business will not use up the remainder of the plant capacity.Given the following list of costs, which one should be ignored in a decision to produce additional units of product?

• A)variable selling expenses
• B)fixed factory overhead
• C)direct labour
• D)contribution margin of additional units

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Definitions:

Theory of Relativity

A fundamental principle in physics, established by Albert Einstein, which describes the relationship between space, time, and gravity.

Subject

In grammar, the part of a sentence or clause that performs the action of the verb or is described by the verb; in philosophy, the thinking or perceiving entity as opposed to the object of thought.

Subject

Represents the entity or topic that is being discussed, analyzed, or used as the focus of a sentence, study, or research.

Proposition

A declarative sentence that is either true or false and states a fact or claim about the world.