Costs That Vary in Total in Direct Proportion to Changes

question 47

Multiple Choice

Costs that vary in total in direct proportion to changes in an activity level are called ______ costs.

• A)fixed
• B)sunk
• C)variable
• D)differential

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Definitions:

Channel Functions

The roles and activities performed by intermediaries within a distribution channel to move products from producers to consumers.

Rack Jobbers

Distributors who place products in stores on consignment and retain ownership of the products while managing inventory and setup.

Limited-Service

Describes businesses or offerings that provide a smaller range of services compared to full-service counterparts, often to specialize or reduce costs.

Cash and Carry

A type of business model where goods are sold for cash and carried away by the buyer without delivery service.