Which of the Following Would Least Likely Be Purchased on a Long-Term

question 38

Multiple Choice

Which of the following would least likely be purchased on a long-term contractual basis?

• A) component parts for mass production
• B) office supplies purchased for a small office
• C) continuous supply products
• D) raw materials

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Definitions:

Average Price

The mean price of a good or service calculated by dividing the total cost by the number of units sold.

Variable Costs

Costs that vary with the level of output produced.

Fixed Costs

Business expenses that remain constant regardless of the level of production or sales.

Variable Costs

Costs that change in proportion to the business activity or production levels, including raw materials and hourly labor.