Examlex
Which of the following is an advantage of direct investment?
Direct Materials
Raw materials that are directly traceable to the production of specific goods or services and are an integral part of the finished product.
Variable Factory Overhead
Variable factory overhead consists of production costs that vary with the level of output, such as utilities and indirect materials.
Fixed Costs
Costs that tend to remain the same in amount, regardless of variations in the level of activity.
Differential Revenue
The additional revenue generated from choosing one alternative over another in decision-making processes.
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