Nate Is an Operations Unit Manager for Morningstar Foods

question 52

Multiple Choice

Nate is an operations unit manager for Morningstar Foods. So far in developing his monthly budget, he has identified the following costs: overhead at $120,000; packaging at $70,000; advertising at $60,000; salaries at $400,000; food production at $90,000; and distribution at $22,000. The fixed costs in this situation would be

• A)overhead, packaging, advertising, salaries, food production, and distribution.
• B)overhead, packaging, advertising, salaries, and distribution.
• C)overhead, advertising, distribution, and salaries.
• D)overhead, advertising, and salaries.
• E)overhead.

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Definitions:

Pension Benefits

Retirement plan benefits, either in lump sum or recurring payments, provided to employees as part of their compensation package.

Employee Pension Plan

An employee pension plan is a retirement plan funded by an employer that provides a fixed payout to retirees, usually based on factors such as salary history and length of employment.

Vested

Having an absolute right to an asset, benefit, or privilege, which is not contingent upon fulfilling any condition or the occurrence of a specific event.

After-School

Activities, programs, or care provided for children after regular school hours.