On Average,________ of a U.S.employee's Pay Is Variable

question 42

Multiple Choice

On average,________ of a U.S.employee's pay is variable.

• A) 5%
• B) 10%
• C) 15%
• D) 20%

---

Definitions:

Variable Costs

Expenses that fluctuate in direct proportion to the production or sales volume, for instance, direct labor and raw materials.

Budgeting

The process of creating a plan to spend your money, allocating financial resources for various purposes over a specified period.

Machine-hours

A measure of the operating time of machines or equipment, typically used as a basis for allocating manufacturing overhead in product costing.

Supplies Costs

Supplies costs are expenses related to the consumable items used in the operation of a business, not directly part of the finished product.