Which of These Is NOT a Subject of a Goods

question 34

Multiple Choice

which of these is NOT a subject of a goods and services proposal?

• A) offering to provide 150 computers to a state agency
• B) offering to install new landscaping around a government building
• C) asking for resources to study how a new pesticide affects lettuce and cabbage crops
• D) asking for a contract to provide cleaning and janitorial services to a government building for one year

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Definitions:

Variable Production Costs

Expenses that vary directly with the volume of production or sales, like direct labor and raw materials.

Fixed Monthly Cost

Regular expenses that do not fluctuate with production volume or sales, such as rent, salaries, and insurance, billed on a monthly basis.

Contribution Margin

Contribution margin is the difference between sales revenue and variable costs of a product or service, highlighting how much revenue contributes towards covering fixed costs and generating profit.

Fixed Manufacturing Overhead

The portion of manufacturing overhead costs that remains constant regardless of the level of production, such as salaries of supervisors and rent of the factory.