Motor Carriers Are Characterized by _____ Variable Costs, While Rail

question 88

Multiple Choice

Motor carriers are characterized by _____ variable costs, while rail carriers have comparatively _____ fixed costs.

• A)higher….high
• B)lower….high
• C)higher….low
• D)lower….low
• E)There is no difference in variable and fixed costing between motor and rail carriers.

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Definitions:

Variable Selling Expense

Costs that vary directly with the level of sales, such as commissions for sales personnel, shipping charges, and promotional expenses.

Manufacturing Overhead

All indirect costs associated with the production process, including but not limited to utilities, rent, and salaries of non-direct labor.

Cash Collections

The process of gathering and managing payments received from customers or clients.

Credit Sales

Sales transactions where the payment is deferred, and goods or services are provided on credit.