Which of the Following Would Be a Tangible Standard

question 4

Multiple Choice

Which of the following would be a tangible standard?

• A) Employee morale
• B) Percentage of successful sales calls
• C) Desirable attitude
• D) Degree of cooperation among employees

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Definitions:

Fixed Production Costs

Payments that stay unchanged regardless of how much is produced or sold, covering rent, salaries, and insurance.

Net Income

The total profit of a company after all expenses, taxes, and costs have been subtracted from total revenues.

Absorption Costing

A costing approach that encompasses all expenses related to production, including direct materials, direct labor, and all manufacturing overheads, both variable and fixed, as part of a product's cost.

Selling and Administrative Expenses

Expenses related to the selling of products and the management of the business, not directly tied to production.