A Car Dealership Would Be Most Likely to Use the ________

question 73

Short Answer

A car dealership would be most likely to use the ________ approach since a sales employee's work is evaluated based on a measurable outcome.

---

Definitions:

Operating Income

Earnings from a company's core business operations, excluding expenses and revenues from investments and other non-operational activities.

Variable Costing

An accounting method that only allocates variable production costs to products, excluding fixed costs.

Absorption Costing

A costing method that includes all manufacturing costs - direct materials, direct labor, and both variable and fixed overhead - in the cost of a product.

Operating Income

The profit realized from a business's core operating activities, excluding costs and revenues from non-operating activities.