Which of the Following Is Most Likely to Be a Variable

question 105

Multiple Choice

Which of the following is most likely to be a variable cost for an airline?

• A)Insurance
• B)Property taxes
• C)Jet fuel
• D)The lease payment on the building where the airline's headquarters are located.

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Definitions:

Manufacturing Overhead

All manufacturing costs that are not directly associated with the production of a product, including indirect materials, indirect labor, and other indirect costs.

Finished Goods Inventory

The products that have completed the manufacturing process, ready to be sold to customers.

Overapplied

Refers to a situation in managerial accounting where the applied overhead is more than the actual overhead incurred.

Underapplied

A situation where the allocated or applied costs are less than the actual costs incurred.