Exhibit 1A-8  Straight Line Relationship According to the Exhibit 1A-8

question 202

Multiple Choice

Exhibit 1A-8  Straight line relationship According to the Exhibit 1A-8, the relationship between the price and quantity purchased of pizza is:

• A) direct.
• B) inverse.
• C) complex.
• D) independent.

---

Definitions:

Manufacturing Overhead

All indirect costs associated with the production process, including utilities, maintenance, and factory management expenses, not directly tied to specific units produced.

Variable Product Cost

Costs that vary directly with the volume of production, such as materials and labor directly involved in manufacturing.

Fixed Period Cost

Costs that remain constant for a specific period of time regardless of the level of output or activity.

Administrative Cost

Expenses related to the general operation of a company, including office salaries, utilities, and legal fees, but not including production costs.