The Case Study on Japanese Vending Machines Is a Story

question 78

Multiple Choice

The case study on Japanese vending machines is a story that teaches us

• A)how a less expensive resource (vending machines)can be substituted for a more expensive resource (labor)
• B)how a more expensive resource (vending machines)can be substituted for a less expensive resource (capital)
• C)how technological innovations (such as vending machines)can eliminate jobs
• D)that machines are starting to dominate our lives
• E)how a technological unsophisticated economy can begin to use machinery

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Definitions:

Variable Costing

An accounting method that includes only variable production costs (direct labor, direct materials, and variable overhead) in product costs, excluding fixed overhead costs.

Absorption Costing

A ledger keeping approach in accounting that wraps all costs connected to manufacturing—expenses for direct materials, wages for direct labor, and all types of manufacturing overhead, fixed and adjustable—into a product's total cost.

Contribution Format

An income statement format that separates fixed costs from variable costs to highlight the contribution margin.

Variable Costing

An accounting method that includes only variable production costs in product costs and treats fixed production costs as period costs.