Rock Creek Bottling Company Pays Its Production Manager a Salary

question 113

Multiple Choice

Rock Creek Bottling Company pays its production manager a salary of $6,000 per month.Salespersons are paid strictly on commission,at $1.50 for each case of product sold. For Rock Creek Bottling Company,the cost of the salespersons' commissions is an example of:

• A) a fixed cost.
• B) a variable cost.
• C) a mixed cost.
• D) none of these

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Definitions:

Operating Cost

Expenses associated with the day-to-day running of a business, excluding the cost of goods sold.

Soft Infrastructure

Non-physical infrastructure, including institutions, human capital, and societal systems that support economic activities.

Community Receptivity

The level of openness or acceptance that a community shows towards a new idea, product, or initiative.

Business Environment

The combination of internal and external factors that influence a company's operating situation.