_____ Are Referred to as Strictly Variable Costs

question 164

Multiple Choice

_____ are referred to as strictly variable costs.

• A) Scarce resources
• B) Implicit resources
• C) Committed resources
• D) Indirect resources
• E) Flexible resources

---

Definitions:

Economic Order Quantity

A formula used in inventory management to determine the optimal order size that minimizes total costs related to acquiring, holding, and replenishing inventory.

Fixed Costs

Expenses that do not change with the level of goods or services produced by a business, such as rent, salaries, and insurance premiums.

Inventory Management

Inventory management involves overseeing and controlling the ordering, storing, and use of components that a company will use in the production of the items it will sell as well as the managing of quantities of finished products.

Collection Policy

Procedures followed by a firm in collecting accounts receivable.