Choose the Word or Phrase in [ ] Which Will

question 123

Short Answer

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-A major variable cost of owning a car is [the loan payment | gasoline].

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Definitions:

Direct Labor

The wages paid to workers directly involved in the production of goods or services.

Overhead

All ongoing business expenses not directly attributable to creating a product or service.

Incremental Cost

The additional cost associated with manufacturing one more unit of production.

Direct Materials

Raw materials directly traced and assigned to the cost of producing goods or services.