In Deciding Whether to Add or Delete a Product,the Salary

question 101

Multiple Choice

In deciding whether to add or delete a product,the salary of the plant manager is an ________.Assume the plant manager supervised the production of several products.

• A) avoidable fixed cost
• B) avoidable variable cost
• C) unavoidable fixed cost
• D) unavoidable variable cost

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Definitions:

Materials Purchased

Refers to the raw materials bought by a company for use in the production process.

Weighted-Average Method

An inventory costing method that calculates the cost of goods sold and ending inventory based on the average cost of all units available for sale during the period.

Equivalent Unit

A concept in cost accounting used to allocate costs to partially completed units of production, treating them as an equivalent amount of fully completed units.

Prior Period Costs

Costs that were incurred in a previous reporting period and may be carried over into the current or a future period.