Henry Has Classified the Following Items Under Variable Costs

question 48

Multiple Choice

Henry has classified the following items under variable costs. Which item has he classified incorrectly?

• A) Expenses for parts
• B) Wages
• C) Outgoing freight
• D) Property taxes
• E) Packaging material expense

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Definitions:

Investment Opportunity

A potential investment that could yield financial returns, often evaluated for its risk-reward profile.

Company

An organized entity formed to conduct business activities, selling goods or services in exchange for profit.

Last Year's Margin

Represents the difference between the sales revenue and the cost of goods sold from the previous year, often expressed as a percentage of sales.

Combined ROI

A metric that aggregates the return on investment from multiple projects or business units into a single figure.