Match Each Following Terms with Their Correct Description from the Items

question 163

Multiple Choice

Match each following terms with their correct description from the items listed below.
-Will increase in total in direct proportion to an increase in the cost driver

• A)Variable cost
• B)Fixed cost
• C)Mixed cost
• D)Step cost

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Definitions:

Cost of Goods Sold

The expenses directly tied to the manufacturing of the products a company sells, including labor and materials.

Accounts Payable

Represents the amount a company owes to its suppliers or creditors for goods and services received but not yet paid for.

Operating Activities

The day-to-day actions a company takes through its production, sales of goods, or provision of services, as reflected in its cash flow.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including materials and labor expenses.