The Running Room Website

question 71

Multiple Choice

The Running Room website

• A) handles online purchases.
• B) provides unique services that are not available in stores.
• C) provides discussion groups.
• D) provides information efficiently to customers.
• E) all of the above.

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Definitions:

Direct Materials

Direct materials are raw materials that are directly attributable and allocable to a finished good or product being manufactured.

Factory Overhead

The indirect costs associated with running a manufacturing operation, including costs like utilities, maintenance, and depreciation of factory equipment.

Variable Costing

The concept that considers the cost of products manufactured to be composed only of those manufacturing costs that increase or decrease as the volume of production rises or falls (direct materials, direct labor, and variable factory overhead).

Manufacturing Costs

Expenses directly tied to the production of goods, including direct materials, direct labor, and manufacturing overhead.