Table 13-8 -Refer to Table 13-8.What Is the Variable Cost of Producing

question 155

Multiple Choice

Table 13-8

-Refer to Table 13-8.What is the variable cost of producing 5 gigaplots at Jimmy's Gigaplot factory?

• A)$64
• B)$85
• C)$90
• D)$100

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Definitions:

Cash Disbursements

The actual money or cash outflows paid out by a business, typically recorded in a cash disbursement journal.

Merchandise Purchases

The acquisition of goods for sale, usually finished goods, by a retail or wholesale business.

Budgeted Cost

An estimate of the financial cost for items, production, or projects planned in the future.

Raw Material Purchases

The total cost of all raw materials bought by a company for use in production over a specific period.