The Land You Own Has the Only Known Source of Aloe

question 130

Multiple Choice

The land you own has the only known source of aloe needed to make anti-itch lotion.In this case,your monopoly results from:

• A)government restrictions.
• B)location.
• C)sunk costs.
• D)ownership of scarce inputs.

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Definitions:

Variable Costing

An accounting method that accounts only for variable production costs (direct materials, direct labor, and variable manufacturing overhead) in product cost calculations, excluding fixed manufacturing overhead.

Unit Product Cost

The complete expense incurred to manufacture a single item, encompassing materials, workforce, and indirect costs.

Contribution Margin

The difference between sales revenue and variable costs, indicating how much revenue contributes to covering fixed costs.

Variable Costing

A bookkeeping approach that incorporates just the variable costs of production (such as direct materials, direct labor, and variable factory overheads) into the costs of products.