Which of the Following Is an Example of a Cost

question 36

Multiple Choice

Which of the following is an example of a cost that varies in total as the number of units produced changes?

• A) Salary of a production supervisor
• B) Direct materials cost
• C) Property taxes on factory buildings
• D) Straight-line depreciation on factory equipment

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Definitions:

Defaulted

The failure to meet legal obligations or conditions, such as not making the required payments on a loan.

Real Defences

Legal defenses that can be used to assert an individual's right or title against the whole world, including in matters of property and debt.

Negotiable Instrument

A negotiable instrument is a written document guaranteeing the payment of a specific amount of money, either on demand or at a set time, with the payer named on the document.

Promissory Note

A monetary document featuring a guarantee from one party to transfer a fixed sum of money to another party, either upon request or at a designated time in the future.