In What Category Are Lubricants That Are Used for Wheel

question 36

Multiple Choice

In what category are lubricants that are used for wheel bearings on skateboards produced by a manufacturer categorized?

• A)selling expense
• B)indirect materials
• C)miscellaneous expense
• D)direct materials

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Definitions:

Selling Price

The amount for which a product or service is sold to the customer.

Margin Of Safety

The difference between actual sales and breakeven sales, quantifying how much output or sales level can drop before a business incurs a loss.

Variable Expenses

Costs that change in direct proportion to changes in the level of activity or production volume, such as raw material costs.

Break-even Point

The point at which total revenue equals total costs, and no profit is earned or lost, often used to determine the feasibility of a business venture or product.