Standardization Would Be Most Appropriate for All of the Following

question 13

Multiple Choice

Standardization would be most appropriate for all of the following products EXCEPT

• A)checking accounts.
• B)chemicals.
• C)steel.
• D)commercial aircraft.

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Definitions:

Variable Expenses

Expenses that vary directly with the amount of production or the degree of business activity.

Fixed Expenses

Costs that do not fluctuate with the level of production or sales, such as rent and salaries.

Contribution Margin

The amount remaining from sales revenue after variable costs are deducted, indicating the capability of covering fixed costs and generating profit.

Variable Manufacturing Costs

Costs that vary in total directly and proportionately with changes in the production volume, including direct materials, direct labor, and variable manufacturing overhead.