Many Publications Base Their Rates on _____ and Give Refunds

question 33

Multiple Choice

Many publications base their rates on _____ and give refunds to advertisers if the number of delivered magazines is below that quantity.

• A)total circulation
• B)primary circulation
• C)guaranteed circulation
• D)circulation verification
• E)rebate circulation

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Definitions:

Variable Manufacturing Overhead

The portion of manufacturing overhead costs that vary directly with production volume, such as supplies and indirect labor.

Fixed Manufacturing Overhead

Costs that do not vary with the level of production or sales, such as rent, property taxes, and salaries of permanent employees.

Variable Manufacturing Overhead

Costs of manufacturing that fluctuate with the level of production, such as utilities or commissions, excluding direct materials and direct labor.

Fixed Manufacturing Overhead

Indirect production costs that remain constant, regardless of the level of production output, such as salaries or rent.