Clara Is a Salesperson in the Corner Store

question 49

Multiple Choice

Clara is a salesperson in The Corner Store.When Carla makes a sale to Jenny,the sale is

• A)binding on The Corner Store.
• B)binding on Carla.
• C)binding on The Corner Store only if the owner of The Corner Store is present when the sale is made.
• D)not binding on anyone.

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Definitions:

Manufacturing Overhead Cost

Indirect factory-related costs that are incurred when producing a product, such as utilities, depreciation, and maintenance.

Variable Cost Per Unit

The cost, which varies with the level of output, of producing one unit of a product.

Variable Cost

Payments that adjust in direct relation to the amount of production or sales, including raw materials and direct labor.

Total Variable Cost

The sum of all variable costs that change with the level of production, including materials, labor, and variable overhead.