What Are the Two Basic Types of Credit? Give Examples

question 70

Essay

What are the two basic types of credit? Give examples of both.

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Definitions:

Variable Costs

Expenses that fluctuate in direct proportion to changes in the level of business activity or production volume, such as raw materials and direct labor.

Machine Hours

A measure of the amount of time a machine is operated, used in allocating manufacturing costs to products.

Sales Mix

The composition of different products or services sold by a company, indicating the proportion each contributes to total sales.

Special Order

A custom or one-time order that may require special pricing or production adjustments.