The National Building Competition Which Started in 2010 Is an Opportunity

question 53

Multiple Choice

The National Building Competition which started in 2010 is an opportunity for

• A) students to design energy efficient buildings
• B) architects to compete in designing the most energy efficient buildings
• C) power companies to come up with better systems to heat homes
• D) solar energy companies to demonstrate their newest technologies
• E) commercial buildings, including those of major corporations, to compete in cutting energy use over a 12 month period

Differentiate between period costs and product costs, and their respective classifications.

Comprehend the impact of applied and actual overhead in cost accounting.

Understand the difference between product costs and period costs.

Identify the components of product costs: direct materials, direct labor, and factory overhead.

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Definitions:

Earnings Before Interest And Taxes

A financial performance measure that calculates a company's profitability before deductions for interest and taxes.

Operating Income

The amount of profit realized from a business's operations after deducting operating expenses such as wages, depreciation, and cost of goods sold.

Operating Leverage

A measure of how revenue growth translates into growth in operating income, indicating the proportion of fixed costs in a company's cost structure.

Breakeven Point

is the level of production or sales at which total revenues equal total costs, resulting in neither profit nor loss.