Which of the Following Factors Are the Two Basic Types

question 34

Multiple Choice

Which of the following factors are the two basic types of compensation?

• A) direct and indirect
• B) wage and bonus
• C) salary and hourly
• D) salary and commission

---

Definitions:

Fixed Costs

Expenses that do not change in proportion to the activity of a business, such as rent or salaries.

Unit Contribution Margin

The difference between the selling price per unit and the variable cost per unit, used to determine how sales affect profitability.

Operating Income

Earnings before interest and taxes (EBIT), a measure of a company's profitability from its core business operations.

Fixed Costs

Operating expenses of a business that remain constant regardless of the volume of production or sales.