Which of the Following Falls Outside of the Classification of Business

question 48

Multiple Choice

Which of the following falls outside of the classification of business expenditures that fall into the category of variable costs?

• A) costs that increase with the quantity produced
• B) costs of research and development
• C) costs related to labor expenditures
• D) costs related to physical inputs

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Definitions:

Revenue And Spending Variance

The difference between the actual revenue and spending versus the budgeted amounts, indicating whether a business is over or under its budgeted figures.

Operating Income

The profit realized from a business's operations after subtracting operating expenses from revenues.

Activity Level

Refers to the volume of production or the quantity of operations that influences costs in manufacturing or service delivery.

Net Operating Income

Profit generated from a company's core business operations, excluding deductions of interest and taxes.