A Manufacturing Firm Typically Has ________ Inventory Account(s)

question 19

Multiple Choice

A manufacturing firm typically has ________ inventory account(s) .

• A)no
• B)one
• C)two
• D)three

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Definitions:

Operating Income

The income a business receives after subtracting operating costs from its gross profit.

Fixed Costs

Costs that do not change with the level of production or sales activities, such as rent, salaries, and insurance premiums.

Variable Costs

Costs that change in proportion to the level of production or business activity.

Unit Contribution Margin

The amount each unit sold contributes to fixed costs and profit after variable costs are subtracted.