The Salary Paid to the Production Manager in a Factory

question 141

Multiple Choice

The salary paid to the production manager in a factory is:

• A)a variable cost.
• B)part of prime cost.
• C)part of conversion cost.
• D)both a variable cost and a prime cost.

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Definitions:

Call Option

A financial contract giving the buyer the right, but not the obligation, to buy an asset at a specified price within a specified time.

Specific Stock

A particular share or security representing ownership in a company.

Specific Price

A precise cost or valuation assigned to a particular item, service, or financial instrument.

Long-Term Debt

Financial obligations of a borrowing entity that are due for repayment in more than one year's time.