Making Decisions on How to Hold Down the Costs of Materials

question 7

Multiple Choice

Making decisions on how to hold down the costs of materials and labor is the job of ______

• A)each employee
• B)the CEO
• C)the accounts manager
• D)the operations manager

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Definitions:

Fixed Expenses

Costs that do not vary with the level of production or sales, such as rent, salaries, and insurance premiums.

Variable Expenses

These are costs that change in proportion to the activity of a business.

Discontinue Product

The decision to stop producing and selling a specific product due to factors like poor sales, obsolescence, or strategic realignment.

Net Operating Income

This refers to a company's income after operating expenses are deducted, but before interest and taxes are subtracted.