Which of the Following Is NOT an Example of a Cost

question 58

Multiple Choice

Which of the following is NOT an example of a cost that varies in total as the number of units produced changes?

• A) Electricity per KWH to operate factory equipment
• B) Direct materials cost
• C) Insurance premiums on factory building
• D) Wages of assembly worker

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Definitions:

Conditional

Subject to one or more conditions or requirements being met; made or granted on certain terms.

Implicit

Implicit refers to something implied or understood though not directly expressed or stated. It is often contrasted with explicit, which is clear and direct.

Programmed Decisions

Decisions that are routine and repetitive, for which algorithms or established procedures can be developed to handle them.

Organizational

Pertaining to the structured arrangement and management of an organization, including its processes, systems, and practices.