Although They Become Part of a Larger Product, ____ Can

question 148

Multiple Choice

Although they become part of a larger product, ____ can often be easily identified and distinguished on the larger product.

• A) component parts
• B) accessory parts
• C) raw materials
• D) process materials
• E) MRO supplies

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Definitions:

Variable Costs

Costs that vary directly with the level of production or sales volume.

Average Costs

The total costs (fixed and variable) of production divided by the total quantity of output, indicating the cost of producing each unit.

Fixed Costs

Costs that do not vary with the level of output or sales, such as rent, salaries, and loan payments.

Break Even

The point at which total costs and total revenue are equal, resulting in no net loss or gain.