Which of the Following Would Probably Be Considered an Indirect

question 37

Multiple Choice

Which of the following would probably be considered an indirect material cost in a bakery?

• A) Spices
• B) Flour
• C) Milk
• D) Eggs

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Definitions:

Variable Cost Concept

A principle in economics that refers to costs that vary directly with the level of production or service activity.

Rate of Return

A measurement of the gain or loss on an investment over a specific period, expressed as a percentage.

Contribution Margin

The difference between sales revenue and variable costs, used to cover fixed costs and generate profit.

Bottleneck

A point of congestion in a production system that occurs when workloads arrive too quickly for the production process to handle, often leading to delays and lower production efficiency.