Refer to St

question 117

Multiple Choice

Refer to St. John's Company. If output was 5,000 units in March and 10,000 units in April, which of the following can be assumed?

• A) Materials are the only variable cost.
• B) Utilities and materials are variable costs.
• C) Insurance and depreciation are mixed costs.
• D) Utilities, insurance, and depreciation are fixed costs.

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Definitions:

Market Price

The current price at which a good or service can be bought or sold in a given market.

Maximum Price

A price ceiling set by the government or a regulatory body, above which a product or service cannot be sold in the market.

Price Ceiling

A government-imposed limit on how high a price can be charged for a product, service, or commodity.

Government

Government is the system or group of people governing an organized community, often a state.