An Example of Customer Space in a Regional Shopping Center

question 112

Multiple Choice

An example of customer space in a regional shopping center is a ________.

• A) department store
• B) community meeting room
• C) storage room
• D) car wash

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Definitions:

Variable Costs

Costs that vary directly with the level of production or volume of output, such as raw materials and labor directly involved in manufacturing.

Activity Levels

A measure used in cost accounting to evaluate the relation between the cost of a particular activity and the level of activity executed.

Operating Leverage

A measure of how revenue growth translates into growth in operating income, determined by the proportion of fixed versus variable costs a company has.

Contribution Margin

The difference between sales revenue and variable costs, indicating how much contributes towards covering fixed costs and generating profit.