An Industry Can Be Defined as

question 126

Multiple Choice

An industry can be defined as

• A)a group of firms that compete to sell a specific product.
• B)any company that produces and sells products.
• C)the set of buyers of a particular good or service.
• D)the top companies that sell a product.

---

Definitions:

Unit Product Cost

The total cost (both variable and fixed) to produce a single unit of product.

Contribution Format

A type of income statement that separates variable costs from fixed costs to calculate a company's contribution margin.

Absorption Costing

A costing method that includes all manufacturing costs—direct materials, direct labor, and both variable and fixed manufacturing overhead—in the cost of a product.

Variable Costing

A ledger maintaining technique that factors in only the variable costs incurred during production (direct materials, direct labor, and variable manufacturing overhead) into product pricing.