_____ Include(s)direct Labor and Direct Materials as Well as Other

question 117

Multiple Choice

_____ include(s) direct labor and direct materials as well as other items that go up and down with sales, such as commissions.

• A)Expenses
• B)Overhead
• C)Variable cost
• D)Depreciation

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Definitions:

Division ROI

Return on Investment for a specific division or segment within a company, measuring profitability in relation to its operating assets.

Variable Expenses

Expenses that change in proportion to the activity of a business.

Fixed Costs

Operating expenses that stay constant regardless of changes in the level of output or sales volume, like leases and salaries.

Asset Investment

The use of funds to purchase property, securities, or other assets to generate returns or achieve strategic goals.