Which of the Following Statements Is of True Engineered Costs

question 24

Multiple Choice

Which of the following statements is of true engineered costs?

• A) They arise from periodic (usually annual) decisions regarding the maximum amount to be incurred.
• B) They have a detailed, physically observable, and repetitive relationship with output.
• C) They include advertising, executive training, and R&D.
• D) They have high level of uncertainty.

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Definitions:

Variable Expenses

Expenses that change in proportion to the activity of a business, such as sales commissions that rise with increased sales or materials costs that rise with increased production.

Discontinue Product

The decision to stop manufacturing, selling, or supporting a product based on criteria such as sales performance, profitability, or strategic alignment.

Open Market

A market with few restrictions on buy-sell transactions, allowing for free competition and prices dictated by supply and demand.

Surplus Material

Excess materials that are left over after the production process or not used within an operation.