In Terms of Cost Behavior, Supervisory Salaries and Direct Labor

question 117

Multiple Choice

In terms of cost behavior, supervisory salaries and direct labor are classified as

• A) fixed and variable, respectively.
• B) both variable.
• C) both fixed.
• D) mixed and fixed, respectively.

---

Definitions:

TX Oil Company

Likely refers to any oil company based in Texas, a state renowned for its significant contributions to the United States' oil industry; without specific context, this description remains general.

Market Price

The current price at which an asset or service can be bought or sold in a marketplace.

User Costs

The costs incurred by the use of a product or service, including wear and tear, opportunity cost of capital, and maintenance.

Extraction Quantity

The amount of natural resources or raw materials removed from the environment for use or sale.