The Master-Operations File Is One of the Data Sources Integrated

question 39

True/False

The master-operations file is one of the data sources integrated with others in the production-planning application program.

---

Definitions:

Variable Administrative Expenses

Expenses that vary with the level of business activity, such as sales commissions or supply costs.

Fixed Selling Expenses

Costs associated with selling that do not change with sales volume, including salaries of sales staff and advertising expenses.

Gross Margin

The difference between sales revenue and the cost of goods sold, divided by revenue, expressed as a percentage.

Variable Cost

Expenses that fluctuate in direct proportion to changes in output or activity level, including costs like supplies and commission fees.