Gemini Car Inc

question 25

Multiple Choice

Gemini Car Inc.buys car components from various manufacturers and assembles them into cars,which it sells under its own brand name.From the given information,Gemini Car is most accurately an example of a(n) :

• A) pirate operator.
• B) original equipment manufacturer.
• C) disintermediation factor.
• D) category captain.

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Definitions:

Indirect Materials

Materials used in the support of the production process that are not easily traced to specific products, essential for maintaining production equipment.

Favorable Variance

A financial term indicating that actual costs were less or actual revenues were more than what was budgeted or forecasted.

Variable Cost

Variable costs vary directly with the level of production output, including expenses like raw materials and direct labor.

Flexible Budget

A dynamic budget that recalibrates based on fluctuations in operational volume or activity.