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:

Sellers

Persons or organizations that provide products or services to be purchased in the marketplace.

Price Ceiling

A maximum price sellers are allowed to charge for a good or service; a form of price control.

Excise Tax

is a tax applied to specific goods or services, such as alcohol or tobacco, usually with the aim of reducing consumption or raising revenue.

SUVs

Sport Utility Vehicles, a category of motor vehicles which combine elements of road-going passenger cars with features from off-road vehicles.