In Case of a Manufacturing Organization, Which of the Following

question 158

Multiple Choice

In case of a manufacturing organization, which of the following is a variable cost that varies directly with the sales volume?

• A) interest cost
• B) dividend cost
• C) shipping cost
• D) rental cost

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Definitions:

Breaching Party

The entity or individual who fails to comply with the terms of a contract, thereby causing a breach.

Creditor

An individual, corporation, or other entity that is owed money by another entity, known as the debtor.

Legislation

Laws enacted by a government or legislative body to regulate, authorize, sanction, grant, declare or restrict.

Debt

An amount of money borrowed by one party from another, under the condition that it is to be paid back at a later date, often with interest.