Which One of the Following Costs Should NOT Be Considered

question 20

Multiple Choice

Which one of the following costs should NOT be considered an indirect cost of serving a particular customer at a Dairy Queen fast food outlet?

• A) The cost of the hamburger patty in the burger the customer ordered.
• B) The wages of the employee who takes the customer's order.
• C) The cost of heating and lighting the kitchen.
• D) The salary of the outlet's manager.

Identify and calculate break-even points in units and dollars.

Calculate margin of safety and understand its significance.

Analyze the effects of changes in cost structure on CVP outcomes.

Apply CVP analysis to decision-making in both manufacturing and service industries.

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Definitions:

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