Which of the Following Lists Contains, in This Order, Natural

question 47

Multiple Choice

Which of the following lists contains, in this order, natural resources, human capital, and physical capital?

• A)for a restaurant: the land where it stands; the things the chef learned at cooking school; the freezers where the steaks are kept
• B)for a furniture company: wood; the company cafeteria; saws
• C)for a railroad: fuel; railroad engines; railroad tracks
• D)for an oil company: the oil it brings to surface; the rigs; the refineries using its oil

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Definitions:

Absorption Costing

A method in accounting where all costs of manufacturing are absorbed by the units produced.

Variable Costing

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

Fixed Overhead

Denotes the regular, recurring costs associated with running a business that do not fluctuate with production volume, such as rent, salaries, and utilities.

Net Income

Net income is the total earnings of a company after all expenses and taxes have been deducted from total revenue, indicating the company's profit.