In Deciding Whether to Add or Delete a Product, Service

question 127

Multiple Choice

In deciding whether to add or delete a product, service, or department, the salary of the plant manager is an:

• A) avoidable fixed cost
• B) avoidable variable cost
• C) unavoidable variable cost
• D) unavoidable fixed cost

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Definitions:

Accounting Year

A specific period of 12 months over which a company's financial and tax records are calculated, not necessarily aligning with the calendar year.

Demonstrate Compliance

The act of proving that actions, procedures, or products meet specific standards or regulations.

Regulation Authorities

Governmental bodies responsible for exercising autonomous authority over some area of human activity in a regulatory or supervisory capacity.

Stipulated Requirements

Specific conditions or criteria that are formally agreed upon and must be met within a contract or agreement.