A Particular Cost Item Could Be Variable for One Cost

question 148

True/False

A particular cost item could be variable for one cost object and fixed for another cost object.

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Definitions:

Margin

The difference between the sales price of a product and its cost of production, often expressed as a percentage of the sales price.

Turnover

The rate at which inventory or assets are sold or replaced in a given period, or the rate employees leave and are replaced in a company.

Return On Investment

A performance measure used to evaluate the efficiency of an investment or to compare the efficiency of multiple investments, calculated as a ratio or percentage of the return on an investment relative to its cost.

Net Operating Income

The net amount a business earns after subtracting operating costs, excluding taxes and interest expenses.