Custom Quilters Makes Decorative Comforters,quilted Garments,and Other Products in a Small

question 69

Multiple Choice

Custom Quilters makes decorative comforters,quilted garments,and other products in a small sewing factory.The company expects to make 2,000 comforters during the current year.With respect to the comforters,how would the supervisory salaries be classified?

• A) Direct and variable
• B) Direct and fixed
• C) Indirect and variable
• D) Indirect and fixed

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Definitions:

Debts Incurred

Obligations or liabilities taken on during the course of financial transactions, often as a result of borrowing money or purchasing goods and services.

Owner's Equity

The residual interest in the assets of the business after deducting liabilities, representing the ownership's financial stake.

Management Efficiency

The effectiveness with which managers utilize resources and make decisions to achieve organizational goals with minimal waste or effort.

Leverage

The use of various financial instruments or borrowed capital, such as debt, to increase the potential return of an investment.